XAUUSD (1273.13): Gold prices were seen giving up the gains as price action fell back to the 1275 – 1274 support level. This indicates that gold prices could see some short term upside correction. Resistance is seen at 1296 which could be tested in the near term, but further gains can be expected only on a convincing breakout above this level. To the downside, gold prices could potentially slip below the current support level which will see a test of the lower support near the 1262 handle. However, watch out for the descending wedge pattern that price has consolidated into. This could suggest an upside breakout that targets the resistance level at 1296.00.
