XAUUSD (1274.98): Gold prices failed near to hold near the support level of 1285.

As a result, price action fell sharply back to the previous support level near 1274.70 region. We expect that this support level will hold in the near term.

The upside is limited as gold prices could be seen rallying back to 1285 to establish resistance near this level.

To the downside, there is risk of a decline below 1274.70. In this case, gold prices could be pushing lower to test the 1262 level of support..