Gold (XAU/USD) is building a long-term bearish correction after the strong peak in 2011 but price could be close to completing that wave 2 or wave 4 and starting a bullish wave 5 (red) if price breaks above the resistance level (red).
A break below the bottom of wave 1, which is the 100% Fib level of wave 2 vs 1 at around $1044, would invalidate the wave 1-2 (purple) pattern and indicate more bearish pressure.
XAU/USD has broken below the support trend line (dotted blue) and could be building a bearish breakout within wave C (purple) of wave 2 (light purple).
XAU/USD remains below the resistance trend line (red), which is indicating that the bearish momentum remains strong. Price is building consolidation zone which will probably make a bearish break.
XAU/USD broke the support trend line (dotted blue) but price is breaking without any impulse or momentum. A new break below the support trend line (green) is needed before a wave 5 can indeed potentially start. A break above the purple line would invalidate the wave 4 (brown).