Gold has been falling sharply this week after about 3 months of consolidation. XAU/USD Daily Chart 10/6(click to enlarge)Break down:- 2016 has been a bullish year for gold and most commodities ie. silver, oil, but not copper, which is choppy and flat. - The bull run stalled after XAU/USD tagged 1370. - The daily chart shows gold consolidating essentially sideways for 3 months. - This could have been a flag pattern in the making. - However, 1300-1310 is a critical area that failed to provide support this week, allowing XAU/USD to fall to 1250. - This also broke a rising trendline, signaling a reversal of the prevailing uptrend.Anticipating resistance:- The RSI is now over sold, and we are testing an old support pivot. - I wouldn't be surprised if there is at least a minor pullback against the bearish breakout.- If a pullback materializes, I would anticipate resistance in that critical 1300-1310 area again. - I would also look for the RSI to stall around 60 if XAU/USD is indeed going to building bearish momentum.