XAUUSD (1276.67): Gold prices posted a modest bounce off the initial test of support near 1274.70. However, the bounce was short lived as price action was seen falling back to this level. We expect that further downside is possible on a breakdown below the 1274.70 support. This will push gold prices lower towards the 1270.00 handle. Alternately, in the event that the support level holds out, gold prices could remain trading sideways. Further direction could be established on a breakout above 1285.00 to the upside and below 1274.70 support.
