For background, I was on a tour coming back from Ballestas Islands just off of Peru, around 11:00 a.m., no rain (it’s a desert area), sky was partly cloudy. The phenomenon stayed a couple of minutes. As we progressed, the colours merged to a strand of amber.
Sun dogs are refraction, and these clouds are diffraction
Oh! I thought OP’s pic was what a sun dog looks like.
I think it is, just with particular ice at a particular radius around the sun above.