I see many positive developments in gold unfolding in a natural progression.  Let’s start with where gold appears to be within the grand market cycle of emotions:

Looking at the daily chart below, I would say somewhere between “Hope” and “Relief”.  We certainly “hope” the bullish inverted Head & Shoulders (H&S) formation will breakout to the upside, leading to a projected minimum target of about $1,800.  Oh how wonderful that would be!

But it hasn’t yet…so no cause for “relief”.

However, when zooming in on the right shoulder formation – we see that gold has actually already staged an upside breakout of a bullish inverted H&S formation, in August of this year.  And, in most bullish fashion – gold has recently successfully back-tested the upside breakout, by forming and breaking out of a bullish pennant formation, which it formed above the “Neckline”.

Note the 4 points, or even-number of contacts within the pennant formation, which indicates a bullish continuation pattern, in accord with “chartology” fundamentals.  Which should lead to the completion of the (purple) Right Shoulder, which sets up a minimum price objective of approximately $1,500, which will lead to an upside breakout of the larger H&S pattern, which sets up the minimum price objective of approximately $1,800.

Oh how wonderful that would be!

Here’s to a great 2018 Gold-tenters!