XAUUSD (1318.80): Gold prices declined after prices stayed muted in the previous three sessions. Price action barely closed below the main support level of 1321.58. This could signal a possible move back above this level in which case the bias would remain to the upside. If gold prices extend lower declines, a modest rebound could lead to a lower high in place. A significant lower high could with no doubt signal that the bullish momentum is off the charts. Watch the 1321.58 level where resistance could be next in the near term. This would indicate a move to the 1300 level initially where support could hold.
