XAUUSD (1288.35): Gold prices extended declines for the fifth consecutive daily session. Price action closed near intraday lows of 1282.74 before slightly pulling back higher. We expect the bearish momentum to continue pushing gold prices lower toward the 1280 handle where support is most likely to be established. Following the test of support near the 1280 level, there is scope for gold to rebound in the short term. The breached support at 1305.72 remains a key level where resistance could be tested. However, if gold prices exceed the current level, further gains could push prices toward the 1321.60 level which would mark the breakout from the rising median line.
