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Gold (XAU/USD) Shifting Overall Mode of 2017

Since 2016, the price of gold has been meandering with no clear direction. But if we just look at price action in 2017, it has been bullish, that is until shifting into a sideways market and now a potentially bearish one.

XAU/USD Daily Chart

(click to enlarge)

Support Cracked, Bearish Outlook:
- Last week, we looked at XAU/USD as it tested the range support area. I noted that we can consider going long here, but suggested we wait for something like a bullish divergence. At the moment, it looks like we should not rely on this support as price action suggests a break and extension lower. 
- We might see some support around 1200, from which there might be some upside back towards 1240. 
- But if price holds under 1240, I tihnk the bearish outlook should stick.
- There is a support pivot aroudn 1180 as well, but the bearish outlook opens up the December 2016 low around 1122.50.