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Gold Breaking a Near-term Trendline Support

The 1H Gold chart shows a market that is signaling bearish continuation. First we know that gold is consolidating since the last week, but before that the market was bearish. At the start of this week, gold was still consolidating, crossing over and under the moving averages (200-, 100-, and 50-hour).

(Gold 9/29 1H Chart)

However as we get ready for the 9/30 session, price is breaking below a near-term trendline from last week's low of 1206.94. Price is also moving south of the moving averages, and if it can stay below them, the bearish bias has been revived. 

If price pops back above 1220 however, the consolidation is not over. Otherwise, price is pressured towards the 1206.94 low. Below 1205 the 2013 and 2014 lows just above 1180 will be in sight.

The 4H chart shows that even in consolidation, the bearish bias was held. The 4H RSI held below 60, showing maintenance of the bearish momentum. Price has also returned below the 50-period SMA. 

(Gold 4H Chart 9/29)

Will gold break down the current consolidation this week and push toward those 2013-2014 lows? Its leaning toward this scenario so far.