We have had a couple of previous harmonic patterns on Gold, and somehow Gold seems to follow the Fib levels quite regularly & precisely.
As of now, we are looking at a bullish Gartley pattern which seems to have completed and one would expect price to rally to the upside.

But before we analyze this pattern, let us look back on some previous patterns.
Looking at the daily time frame, we initially had a bearish Gartley pattern which started forming in the month of March’08.

The pattern formed with precise waves, and subsequently fulfilled its target objectives too, quite accurately.
Subsequently, price rallied from this support level, found resistance at the fib retracement level of 78.6% and formed a bearish divergence in the process.
Thus this level became a strong resistance zone & we could have expected price to change trend to the downside.

As we mentioned, Gold seems to follow the fib levels quite accurately & we could have estimated the expected support area of this downtrend.

And as we can see, price found support at precisely the 127.2 Fib projections.

This brings us back to the existing bullish Harmonic pattern.
Since we have a bounce of a strong Fib support level, the probability of this pattern fulfilling becomes higher. And looking at the previous harmonic patterns, one would expect price to follow the fib levels.

Price has bounced from the support zone at “D” and in the process, has also broken some previous levels of support/resistance. (As shown by the blue horizontal line on the chart)
Hence one would assume bullish momentum and expect price to rally to the target objectives.

Repeating the basis of “Forexology”. There are no guarentees in trading and what has worked previously, may not work again. Its only the risk management & a proper trade management which will ensure success.

Sunil.