XAUUSD (1294.45): Gold prices advanced higher on the day as the price was seen testing the highs of 1294, marking a new seven month high. This comes following the brief retest of support at the 1280 handle. The bullish momentum looks firm for the moment, but there is the scope that gold will retest the 1280 handle in the near term. The lower pending retest of support at 1250 remains open, which exposes the downside risk in gold. Watch for price action to consolidate near the 1280 level in this regard. Failure to establish strong support at this level could risk pushing gold prices lower. To the upside, the next main target comes in at the round number of 1300.00
