XAUUSD (1296.03): Gold prices have managed to maintain the upside moment despite some flat price action. Currently trading near the 1295 – 1296 level, gold prices are expected to see further gains pushing price towards the 1300 – 1304 level where resistance has been established. This could see a short term decline in price action as gold prices maintain a new sideways range within 1304 and 1285 level. The unfolding price action and the expected rally towards the 1304 level also signals a potential cup and handle pattern that could form. However, further evidence of this is required as we wait for a retracement off the 1304 resistance ahead of the pullback.
