XAUUSD (11286.42): Gold prices touched a two-month high yesterday, but price action is likely to show some short term exhaution to the rally. The immediate support is seen at 1270 levels which could be tested on a downside break. To the upside, gold prices remain range bound in the longer term horizon. The previously established resistance level at 1292.40 is likely to be tested once again. Given the strong pace of gains, however, we can expect gold prices to test the level before reversing off the resistance level. The newly established range with support at 1270 will be key for the short-term price action, which we suspect will stay sideways for the moment.
