Gold has been trading downwards after the CPI m/m release and there is more potential for downside. I found the breakout of upward trend line, which may result potential test of $1,485.

Orange rectangle – Resistance zone

Falling purple lines – Downward channel

Falling purple line – Expected path

Gold is still trading inside of the defined downward channel. Since it is trading near the upper trend line, I do expect another downside move. Major resistance level is seen at the price of $1,518 and support level at $1,485.

Overall, Gold is in consolidation phase and the low volume environment .