Gold: triangle pattern to explode soon

The price of gold seems undecided in the short term. It is moving sideways signaling a new distribution pattern. It's trading at 1,862 at the time of writing. Today, the technical factors could move the rate.

Tomorrow, the fundamentals could really shake the price of gold. The US Consumer Price Index may announce 0.5% growth in the last month, while Core CPI could report a 0.4% growth. The inflation data represent a high-impact event. Lower inflation could help XAU/USD to rebound.

XAU/USD Sideways Movement!

Technically, the price action developed a minor triangle pattern. This could announce more declines as long as Gold stays below the upper median line (uml). Staying near this dynamic resistance may announce an imminent breakout.

The 1,852 former low represents a critical downside obstacle. On the contrary, 1,872 stands as a static resistance. It could move sideways between these levels in the short term.

XAU/USD Forecast!

A new lower low, a bearish closure below 1,852 activates more declines and brings new selling opportunities.

On the other hand, jumping and closing above 1,872 may announce a larger rebound.