Gold set its low for the handle with an intraday spike down to 1166 compliments of the heavy handed bear raids ahead of option expiry, but put in the daily close at an almost perfect 38.2% Fibonacci retracement.
Since then gold has been rallying, breaking through the key 1200 level right after the expiration where so many call options had been concentrated.
h/t lemetropolecafe.com
It has already reached what might prove to be the upper bound of resistance for the handle, although I would expect it to be a rough go higher from here until a breakout is achieved.
The target of 1400 to 1450 looks good. As the breakout gains shape hopefully a minimum measuring objective can be calibrated more precisely.
Once gold starts moving I would not be surprised to see a breakaway gap that does not get filled, but leaves many punters on the sidelines waiting for a pullback.
The usual caution is that if there is a market crash and a liquidation panic, gold will be sold along with almost everything else, at least temporarily, but then should rebound strongly as the central banks act to bolster confidence and liquidity by devaluing their currencies even more aggressively tha they have already been doing.
Classic Cup and Handle Chart Formation
See also Gold Is In a Classic Cup and Handle Formation Targeting 1,450: May 19th
"O that I could find in the desert a wayside shelter for travelers, that I might depart from my people. For they are all adulterers, an unfaithful mob of traitors. Their tongues are devious weapons, bent like drawn bows. With falsehoods rather than truth they have gained power. They commit one crime after another. They do not know me, says the Lord. I will make Jerusalem a heap of ruins, the lair of jackals. I will lay waste to Judah, a desolation where no one can live."
Jeremiah 9:2-3,11