There's just one huge, major, giant problem with believing this triangle will result in a breakout up - MANIPULATION always negates free market trading patterns.

In the case of gold, the manipulation is to force it down.

Here's my prediction on the two possible breakout directions:

1. Gold breaks out to the upside - then over a period of days, gold comes back down to test the downtrend breakout line, then goes back up. However, since the system hasn't collapsed yet, gold will not be allowed to break through $1000. The result will be a continuing sideways pattern until the system collapses.

or

2. Manipulation will force gold to breakout to the downside resulting in the usual waterfall as Stops are hit lower and lower. Eventually gold will grind its way back up then continue to trade in a sideways trading pattern, not being allowed to break through $1000 until the system collapses.

I still maintain the $1000 barrier will not fall until the system collapses. It just won't be allowed until the financial system finally stops functioning and manipulation simply can no longer exist.

This financial system is in a "do or die" situation, and nothing whatsoever is being done to fix it, so it will die. Until it does, total desperation will rule the days for the US government and the banksters. They will do everything possible to pull every dirty trick out of their hat of illegal tricks to fight the system failure. A fight to their death. Gold is their enemy, along with the people that are for gold.

Terry