XAUUSD (1248.76): Gold prices turned bullish on Monday. The sharp rally came following President Trump’s comments on the Fed rate hikes. However, with price action reaching the 1248 handle, we expect the price to post a modest correction to the downside. The support at 1242 remains key to the downside. If gold prices break past the 1248 level of resistance that is currently being tested, a near-term target of 1250 can be further achieved. However, further gains are unlikely to come by unless support is firmly established at 1242.25 handle.
