Gold’s Next Target is $1405

The wedge that we can observe on the weekly and the monthly time frames has been forming for exactly two years – from 1st Dec 2013 to 1st Dec 2015 and it is rallying towards its limit, which is at the $1405 level.

Let me explain how I calculated this target: the width of the wedge (i.e. the distance between its highest and lowest points) is projected north of its lowest point. In this case, that projection points to the $1405.

And although at the moment Gold has reached the resistance between $1290 and $1300, I have little doubt that the wedge will reach its limit around $1400 - $1405 before we see a deeper correction to the downside.