XAUUSD (1296.27): Gold posted modest declines on Monday following Friday’s bullish close. However, price action managed to recover these declines during the early trading session today. The reversal came after gold briefly tested the support at 1290.50 level. On the 4-hour chart, the Stochastics is showing that momentum is building up. This could potentially keep gold biased to the upside. In the short term, the previous highs at 1300.80 need to be breached to confirm the continuation to the upside. The next main target is at the 1305 level, followed by a correction toward the 1319 – 1322 region.
