Key Points:
- Gold charts a symmetrical triangle pattern.
- Bullion nears a critical decision point.
- December CPI report may influence market direction.
Symmetrical Triangle Pattern Emerges
Gold prices hovered around $2,680 per ounce on Wednesday. A symmetrical triangle has formed on the daily chart. This pattern shows lower highs as resistance and higher lows as support. The chart’s inflection point is near as these lines converge.
Will Gold Break Out or Break Down?
Traders face a pivotal decision: will gold break upward or downward? A breakout above resistance favors bulls. Conversely, a breakdown below support could let bears dominate and push prices lower.
CPI Data Could Spark Volatility
The December Consumer Price Index (CPI) report is a potential market mover. Analysts expect a year-over-year increase of 2.9%, up from November’s 2.7%. However, producer price data showed unexpected moderation with just a 0.2% monthly rise. This raises hopes of easing inflation pressures.
What’s Next for XAU/USD?
Gold traders should watch closely for a breakout. The CPI report could create volatility and provide trading opportunities. Bulls or bears will likely seize control after this critical juncture.
Source: Treading View
