As we enter what has historically been the most bullish month of the year for gold, gold futures are tumbling through key technical levels in a vicious sell-off:

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GC_Daily_9.2.2014

With this morning's breakdown from the large multi-month symmetrical triangle it is difficult to find anything positive to say about the near-term prospects for gold. However, an afternoon reversal back above $1275 could set the stage for a false breakdown and print a bullish hammer candlestick on the daily chart.

We will have to wait to see how the day develops, although for now it appears that sellers are firmly in control. Should the current technical picture remain intact the June lows near $1240 look to be the next natural downside target for the gold price.