XAUUSD (1288.56): Gold prices continued to maintain the bullish momentum although price action was seen briefly retreating off the highs before recovering in today’s early Asian trading session. Establishing support at the 1280 handle has pushed gold prices slightly higher from Wednesday’s highs. However, with the Stochastics oscillator pointing to a bearish divergence, we anticipate that the support level at 1280 could give way to some downside in price action. A break down below 1280 will potentially push gold prices down to the 1250 handle where support is most likely to be established.
