Gold prices which often tend to fall in an era of interest rate hikes posted strong gains last week.

This came despite the U.S. Federal Reserve hiking interest rates, although the move was widely discounted by the markets.

Gold prices touched levels close to $1350 last week before easing back towards Friday’s close.

The gains in the precious metal comes as it reverses the declines previously. Still, the overall trend remains range bound as far as gold is concerned.

Last week, gold prices rose following a brief consolidation period that formed the bullish flag pattern.

This led gold prices to test the previous levels from mid-February.

In the near term, gold prices will likely pullback to establish support near the 1328 level which served as resistance over the past couple of weeks.

Establishing support at the 1328 region could signal further gains in gold prices targeting the next key level at $1357.00.

This bullish bias is expected to change only on a close below the 1328 support. A break down below this level could potentially shift the bias back to the downside.