Gold popped higher following a deceleration in US CPI last month. After a rally above the August high of 1805, a brief consolidation saw support at 1765 right over the 20-day moving average. As the trading range compressed, the pressure was building up ahead of a breakout. This came in the shape of a strong impetus above 1810 which could lead to a runaway rally above 1850. As the RSI shot into the overbought area a pullback could ensue and the base of the breakout at 1790 is a key level to maintain the upward bias.
