Gold Technical Analysis: Hits 2-1/2 week lows, bears await a follow-through weakness below $1300 mark

   •  The precious metal finally broke down of its multi-day consolidative trading range and dropped to 2-1/2 week lows, closer to the key $1300 psychological mark in the last hour.

   •  The fact that the commodity remains well below important intraday moving averages – 50, 100 & 200-hour SMAs, support prospects for an extension of the near-term downfall.

   •  Moreover, oscillators on hourly charts have been gaining negative traction and weakness below the $1305-04 region might now be seen as a key trigger for intraday bearish traders.

   •  However, technical indicators on the daily chart have managed to hold in the bullish territory and warrant some caution before placing any aggressive near-term directional bets.

   •  Hence, traders are likely to wait for a sustained break below the mentioned handle before confirming that the commodity might have actually topped out and positioning for further decline.

Gold 1-hourly chart