Extreme consolidation on gold

On many occasions the financial assets could enter into a well-defined range in a consolidation that could last a prolonged period of time like in gold. On the daily chart of gold we can see that the price of the precious metal has been consolidated between the 200 day EMA as support around the 1267 level and the 55 day EMA as resistance around the 1283 level during the last 10 sessions. Inside such range, we could try to trade by buying at the support of the 200 day EMA or selling at the resistance of the 55 day EMA, however we could risk having the price take off in any direction and leaving us on the wrong side of the trade. If there is a bullish breakout, then its closest resistance is at the 1300 level, but a breakout above the 1300 level could take the price to the peak at the 1357 level. To the downside, a bearish breakdown of the 200 day EMA would open the road for the price to drop all the way to the 1204 level or the 1200 level with some minor pullbacks on the way down.