Why Gold Is Consolidating Now

Gold may have taken a temporary backseat as silver steals the spotlight, but the underlying trend remains constructive. The metal is currently in a phase of long consolidation, with prices largely capped in a defined range. The key trigger ahead is event risk, especially the Bank of Japan’s interest rate decision. A rate hike could weaken the dollar index, opening the door for gold to break past crucial resistance levels. A sustained move above $4,400 could push prices towards $4,500 globally and ₹1.38–1.40 lakh in domestic markets. Importantly, gold has not shown any bearish signals so far. While silver leads in the near term, gold’s bias remains positive, with a potential run-up into January before consolidation sets in.