XAUUSD (1278.56): Gold prices maintained strong gains last week as price action settled near the 1280 handle as previously noted. With resistance being established here, gold prices are likely to remain consolidating around this level. Failure to breakout out above 1280 could keep gold prices biased to the downside. The downside target is seen at 1250 where support is yet to be established. This short-term correction could eventually pave way for gold prices to potentially breakout above 1280 handle. However, we expect that the precious metal could remain caught in the range for the near term.
