Gold Technical Analysis: Potential target at $1285

• The yellow metal jumped today, after making a clear break of the key technical resistance area of $1250. It is consolidating on top, a scenario that would open the doors to more gains in the coming weeks. So far, it gained more than $10 after breaking $1250; it peaked at $1265. 
• Short-term technical indicators are about to show extreme overbought readings. Still, the bias points to further gains. Ahead of the Asian session, the momentum remains strong despite the extension of the rally.
• As long as it holds on top of $1250, the upside scenario would be favored. The immediate resistance is located at $1270. 
• The potential target of the current move to the upside is $1285, the 61.8% Fibonacci retracement of the decline from $1360 to $1160 and also a horizontal level. A decline below $1240 would invalidate the bullish outlook. 

XAU/USD Daily chart