Gold ended last week, and essentially November by breaking below the correction pattern formed during November. The daily chart below shows this breakout, and the persistence of the prevailing downtrend. (gold daily chart 12/1; click to enlarge) We can see that even before the flag or pennant pattern breakout, the prevailing down trend was intact. The most telling signs are price respecting the 50-day SMA and thus holding below the 200-, 100-, and 50-day SMAs. The RSI has tagged below 30 and held below 60. Now, we are starting this week with a gap to the downside as seen in many retail trading charts. If we do see the gap close, look out for sellers in the 1165 area. However, if price extends we can also expect sellers in the 1180-1185 support/resistance area. To the downside, we have the 1130 level in sight for the short-term, and then the 1100 psychological level in the medium-term.