Gold is working on the right shoulder of a head and shoulders with a neckline at roughly 1310. The minimum target upon breakout would be the blue megaphone VWAP at 1130, but gold would be a strong favorite to make it back to the bottom of the orange megaphone at a little below 1000.
If instead gold puts in a right shoulder failure and upwards breakout from its H&S, it will be confirming a new rising megaphone (red on chart). It will also be confirming a breakout from a jumbo inverse H&S bottom (blue neckline) on the daily chart.
The move after the breakout would typically be a melt-up.
The target would be the orange megaphone top, or roughly 1600, and if the move were to fizzle out lower we’d have plenty of warning. Rising megaphones tend to fizzle out with a price twining up the bottom and they tend to top with head and shoulders formations.