Gold continues to trace out a large descending triangle. Interestingly, though, it has now constructed an ascending triangle within the descending triangle (the white dashed lines.)
Each is roughly 65% of the way from origin to apex — typically the point at which these things break out. The larger triangle comes at the tail end of a spectacular run up in prices — meaning it is more likely (73% according to Bulkowski) to break upwards. The smaller pattern could break either way, though a break down for another test of the 1530ish baseline certainly looks logical.
There is little in the harmonic patterns to suggest one direction over the other. A completion of any of the potential patterns means a trip outside one or both triangles. But, the regularity of the travels from one bound to the other suggests playing the swings and/or the breakout.
A break upward from the small triangle at 1634 would likely result in a run to(at least) the upper bound of the larger triange — currently at 1655. Likewise, a break of the small triangle’s lower bound (currently at 1592) should be good for a trip down to 1530.
Since prices most recently tagged the lower bound of the small triangle, I’d be inclined to continue playing the upside at the moment; but, from 1609 to 1633 is only about 1.5%. Stay tuned.