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Gold (XAU/USD) Approaches Triangle Support

Since the sharp plunge to a multi-year low around 1071, gold price action has been trading in a choppy but more or less sideways manner. There is only a slight decline in volatility, which resulted in a bit of coiling, or a triangle as we can see in the daily chart. 

Gold (XAU/USD) Daily Chart 9/30

(click to enlarge)

Gold still appears bearish in the medium-term, but in the more recent span of the medium-term, gold has become neutral. We can expect some support at or above 1100. In fact, I would look for a bullish outlook if price does come down to 1100 stalls while the RSI turns back up before dropping below 40. That would tell me that the momentum of the bullish correction since the end of July is still in play. However because of the prevailing downtrend before August, I would limit that bullish outlook to the 1140 handle.

A break below 1100 puts the 1071 low in play again with risk of continuing lower, in line with the prevailing downtrend since 2011, when gold retreated from its record high of 1920.