XAUUSD (1342.79): Gold prices posted strong gains on Tuesday as price action rallied strongly. In a follow through, the precious metal rose to a fresh 10-month high earlier today with the intraday gains briefly testing the 1346.62 level. This marks the price level that we were anticipating to the upside following the breakout from the bullish flag pattern. A firm retest should trigger around the 1346 – 1347 level. As long as these resistance levels, gold prices could be seen posting a correction in the near term. The previously held support at 1321.50 remains the key target to the downside.
