December Gold futures are quickly approaching the low of 1185 the contract saw back in late 2013. The price has already broken below a 200 point triangle pattern, which indicated more downside was likely.
Figure 1. Gold Futures Daily Chart (December Contract)
The next major hurdle will be how the market reacts around the 1185 low. A strong bounce off that level in early 2014, and in July of 2013, shows there is strong support. A breach confirms the downside triangle target of 1075. This is attained by taking the approximate height of the triangle--200 points--and subtracting it from the breakout price of 1275.
This smaller triangle, which began at the start of 2014, isn't the only triangle to consider though. Extending back to mid-2013 there is a larger descending triangle. To break that triangle requires a drop below 1185, and would signal a longer-term decline to 935.
On the other hand, if triangle support holds, look for a rally toward the top of the triangle at 1300.
If not already in a position, use a stop loss on new positions. One method is to place a stop loss above a recent swing relative to the entry point.