(Kitco News) - Gold on the 4-hour chart below is stuck in a firm consolidation zone. There is some important CPI data out later in the session and the reading is expected to reach 5.9% vs the previous reading of 6.2%. There have been some political notes out this week suggesting the reading could be high but we will have to see.
Looking closer at the chart, The price has respected the Fibonacci retracement level and has now moved lower of the 38.2% retracement zone. The main support now stands at $1830/oz. Below that the main low on the chart is the biggest support at $1785/oz.
Looking at the volume profile indicator, the price is now trading below the volume point of control at the solid red horizontal line. The general price pattern is pretty bearish right now as a lower high pattern is been printed. To turn more positive the price would have to take out the previous wave high at $1862.4/oz. Only then could we look to the consolidation high of $1879.6/oz to be tested.
For now, the price is in a heavy consolidation pattern. Maybe the data later could be enough to inspire some volatility for some movement out of the sideways action.
