The Bureau of Labor Statistics is about to release the latest inflation report on Tuesday. This report will define the next move in the precious metals. The gold and silver prices may remain volatile until the release of the inflation report.
Gold Technical Analysis: Consolidation Defines the Next Breakout
The daily chart for spot gold shows that the price hit the 50-day SMA near $4,765 but failed to close above this level and opened lower on Monday.
The chart highlights the red region, which shows strong consolidation between $4,500 and $4,800. A break above $4,800 will suggest a strong move towards $5,200 in the short term. But a break below $4,500 will indicate further downside towards $4,300 at 200-day SMA.