XAUUSD (1289.32): Gold failed to maintain the bullish momentum last week as price action reversed course just a few ticks shy of the 1300 round number resistance. As a result, the gold price settled lower at the 1280 level which we are closely watching. For the moment, the strong bullish reversal on Friday has established support at this level. Gold prices will now have to post a higher high to test the 1300 level. Failure to do so could keep price action subdued and expose the risk of the support level at 1280 giving way. This could open the price action to test the lower support at the 1250 handle.
