XAU/USD: Gold Prices Consolidate in Symmetrical Triangle. What Happens Next?

Precious metal has been charting higher lows and lower highs on the daily timeframe. Now, it’s nearing the make-or-break point.

⚠️ Symmetrical Triangle in the Works

• Gold prices XAUUSD were gyrating around the flatline near $2,680 per ounce Wednesday morning with an interesting technical analysis formation taking shape on the chart. On the daily timeframe, gold is painting what’s called a symmetrical triangle with lower highs as resistance and higher lows as support.
• The formation appears to be nearing its inflection point as the two lines — the resistance from above and the support from below — are just about to collide.

💡 What’s It Gonna Be?

• What happens next? Gold traders will need to decide whether the next leg will be up or down. If prices break out to the upside, bulls may take control. But if the price tanks and breaks the support line, bears might run the dealmaking scene and pressure prices.
• What’s coming to markets today may help gold traders make that decision. The consumer price index report for December is bound to spark volatility and create trading opportunities.

🥣 CPI Coming to Stir Things Up

• Consumer prices, coming with the monthly CPI report, are expected to show an increase of 2.9% for December from last year. If true, it will mark another month of simmering price pressures following November’s 2.7% clip.
• There is, however, a reason for some to believe that it won’t be that bad. Producer prices released yesterday showed a surprise drop on a monthly basis with just a 0.2% increase. Investors had expected an increase of 0.4%.