The FOMC meeting at 7pm UK time this evening could provide the spark for the break out of the triangle, with trading likely to be volatile immediatly before and after the announcement.
Whilst there is still a possibility that the start of QE tapering will be announced in the statement following tonight's meeting, this would be a shock to the market and likely see gold sell off sharply, with the dollar the main beneficiary.
The dollar is currently struggling to hold onto support at 80 and with oil surging higher and equities remaining robust, it appears that QE is not on the table for today.
Support can be found at 1230, 1223-1227, 1217-1220, 1212, 1200-1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1237-1240, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1270 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.
Today's video for subscribers looks at the developing triangle consolidation and what it means for gold.