XAUUSD (1332.13): Gold prices gapped down at the start of the week, but price action is showing a sign of reversal after support looks to be established at 1324.72. This completes the gap from September 1st and looks to be a minor support level that has been established. It also puts the bias in gold to the upside in the near term. The support at 1324.72 also coincides with the lower median line which also offers a dynamic support level. A rebound is, therefore, expected which will see gold prices pushing higher to retest the 1345.87 resistance level. A retest of this level will fill the gap from Friday’s close. Gold prices are likely to remain range bound in the near term within the 1345.87 and 1324.72 levels of resistance and support. A breakout off these levels will suggest further gains or declines to come. The bias, however, remains to the downside with gold prices likely to target 1300.00 region of support which is pending a retest.
