Not quite a classic cup and handle pattern, but gold’s 2-week flag after a broad saucer through March-April suggests strong buyer interest. Breakout above $1280 would signal a fresh advance. Follow-through above $1300 would confirm, offering a long-term target of 1550 (the lows of Sep/Dec 2011 and May 2012).
* Target calculation: 1300 + ( 1300 – 1050 ) = 1550
Disclosure: Our managed portfolios are invested in Australian gold stocks.