Gold is approaching our next upside target from two weeks ago [see: Gold – Following the Yellow Brick Road.]

continued for members…

The  purple .618 at 1280.80 was one of several upside targets suggested if GC were able to pop through the SMA200.  It did so once on Apr 7, but quickly retreated below the red TL from last July.  This breakout appears to have more staying power.

If GC can close above 1264.90, then we could get a backtest of the first red TL and the red channel bottom at 1250 or so.  But, the momentum will be with bulls with the gray channel midline and .886 at 1348.6 clearly in view (purple dot.)  If things get gnarly on the geopolitical front, then a trip to 1380ish would complete a huge IH&S pattern targeting 1720.

To be clear, I expect TPTB to do everything possible to prevent that IH&S from playing out.

Stay tuned…