Safe Haven or Investment? (2010-06-27 Gold analysis)

June almost ends and I believe the common instrument that most people would place their most concern on would be gold. Instead of drawing cup and handle formation like many people do on the internet, I try to analyze using very simple tools, and probably have the same conclusion with many others.



I have drawn two triangles on the daily chart of Gold. The previous breakout of triangle led gold price to rally from around 930 to as high as 1226. I use fibs projection to try to figure out what the destination would be should the price breaks the triangle this time. A fair estimate would be at 1522, which would be a 300-point surge.

Since the preivous "fly" took around 4 months, due to a smaller period of triangle formation this time, I would expect the rise this time would take around 2-3 months. Perpahs it is time to invest on gold but not treat it as safe haven.