Gold rose above a small H&S pattern on the hourly chart yesterday and there was a short-covering rally to 1712. There is no strong resistance until you get to 1722 where the monthly and weekly pivots lie. It is possible we will see a continuation to that level – despite the rally from the (smaller) triangle breakout in August looking quite extended – and if it reaches there it will probably provide an ideal place to fade.
Written by Forex4you