Gold prices were seen trading last week but price action attempted to post a modest correction.

With the weekend elections scheduled for in Italy, we expect to see some near term bids that could pust Gold prices higher by Monday’s open.

Despite the short term bump in gold prices, the overall trend remains to the downside.

Gold prices were hit by the fact that the comments from the U.S. Federal Reserve Governor, Jerome Powell’s testimony to the U.S. Congress last week.

Powerll’s comments were mixed as on the first day, the markets interpreted his testimony as being hawkish for interest rates.

This led gold prices to decline later in the week.

However, following the second day of testimony, Powell’s comments were seen to be somewhat guarded, which also led to the strong bounce in gold prices.

From a technical stand point, we expect gold prices to rise towards the minor resistance level seen at 1327 – 1325 level.

However, we expect this resistance level to hold.

This could send gold prices resuming the bearish trend as we anticipate a strong retest of the support level near 1303.

A break down below this level could no doubt send gold prices falling even further with the potential to test the next main support zone at 1282 – 1274 region.