The war on disinflation unleashed by Trump’s tariffs and attack on Iran was quite beneficial to gold, allowing it to break out of the steeper rising channel it had used to break out of two well-established and competing channels.

The inflation wrought by tariffs took GC out of both the rising white channel from 2011 and the rising purple channel from 2016. As soon on the weekly channel below, the breakout also allowed GC to backtest the gray channel dating back to 1999.

However, if we pull back even further, we can see that a much bigger channel top was tested: the yellow channel dating back to the 1970s.

Adding the yellow channel into the picture makes our 3344 target even more compelling. Should it occur around the end of the year, it would represent a backtest of the 2.618 Fib extension, the weekly 200-period moving average, the rising white channel, the rising purple channel and the yellow channel’s .786 Fib.

I believe GC will find the convergence of so many juicy targets at the same time and place hard to ignore. Needless to say, these targets all represent potential support. But, a drop through 3344 would open up 3000, followed by 2460. Note that it has already broken below and backtested its SMA200.

Of course, if it finds reason to break back above 5000, the next stop could well be in another galaxy.

Stay tuned…