Below you will find the chart of gold as of April 3, 2020 at about 4PM. It had become quite clear that gold had consolidated via an inverse head and shoulders pattern and was preparing for a new leg higher.
It is now April 6, 2020 around 8:45AM and gold appears to be breaking out. With breakouts, retests of the breakout line are common, but not definite.
Many did not understand the major drop that occurred in gold during the stock market crash.
Fundamentally, none of this should come as a surprise as anyone who has been watching the news would have lost track of the fiscal and monetary stimulus by now. We had the $6 Trillion fiscal package out of the government, but what most do not follow closely enough is the FED.
For fun, I will try to answer where gold is headed next.
Target 1 – $1,700 – Recent peak and psychological round number resistance
Target 2 – ~$1,733 – .786 Fibonacci retracement of the 2011 peak to the 2015 trough
Target 3 – ~$1,780 – This area was busy in 2011 and 2012
Target 4 – $1,800 – Psychological round number resistance
Target 5 – $1,900 – Psychological round number resistance
Target 6 – $1921 – New all-time weekly highs