Good time to buy gold

With Europe awash with stories of the imminent default of Greece, and German banks told to prepare for a 50% haircut on Greek bonds [Bloomberg], this would be a good time to buy gold. Any rupture in current bailout arrangements would cause a flight to safety, driving Treasury yields even lower and gold even higher. Breakout above $1900 would confirm a fresh advance, with a target of 2100*.


* Target calculation: 1900 + ( 1900 – 1700 ) = 2100

Added in response to question: Reversal below 1800 is unlikely but would warn that the ascending triangle formation has failed.