XAUUSD (1248.79): Gold prices continue to extend their declines following last Thursday’s close below the 1262 handle. Price action fell to a 5-month low. The Stochastics oscillator on the daily chart is however, in the oversold level including the 4-hour time frame. This suggests a near term retracement. The gains in gold prices could be limited to the price level of 1262 where resistance could be established. Any upside gains can be expected only on a strong close above this level. To the upside, 1285 resistance will be back in focus. A reversal near the 1262 area could however spell more declines for gold prices in the near term.
