Gold Headed for $800!

Back in April, I wrote about trading gaps in the nearest Gold contract:

Now, our third gap took place on 02/06/2006 with a close at 574.3. IMO, the bottom was at 539.0 on 02/16/2006. As I indicated in my previous post, I believe we have broken out of a small head and shoulders bottom. If this move acts like the previous two our next high should be between 625.40 and 640.00, sometime in the first two weeks of April.

That gap was filled on March 29th, and Gold hit $636 on April 19th. While I missed the timing by three days, gold continued higher until May 11, at $728, a gain from the filling of the gap of about $148.

Now we have another two gaps on May 19th and May 24th (see chart). Those gaps will be filled when we trade at or above $680.20. If the gaps are filled, we should trade $148 higher from the gap or $828.20.

Assuming we close the gaps next week, based on the amount of time the last $148 took, I would guess that we trade over $800 prior to August 1st.

Gold Gold Gaps Finance Mover Mike

Update:


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