The Consumer Price Index coming out of the United States is a major indicator of inflation, which is expected to be hot. If it comes out extraordinarily high, then it is likely that the markets will anticipate that the Federal Reserve will become extraordinarily aggressive with its tightening policy, which is what has been driving bond yields higher, and gold lower right along with them.
From a longer-term standpoint, you can make an argument that breaking below the 200-day EMA is a signal that we are starting to see even further weakness, so technical traders will be looking to short this market as well.
The market has been falling lower for quite some time, and it does seem like we are on the precipice of something big based on the momentum, which is why think Wednesday could be so crucial for gold. If we were to break down below the $1800 level, then the market will more than likely start to unwind quite drastically at that point.
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