Not only did gold cross the moving averages I mentioned yesterday, effectively keeping north of the head-and-shoulders neckline, but it is now bouncing around and attempting to take out the 1775 shoulder! The bearish pattern got beat!
Now, where In the day-term, 1800 seems likely, given a lot of market action at that level and it could be possible for the price to consolidate there for a while. One note of caution however is that the shoulder top is at 1780, and that to have a clean break a 1hr close needs to be above this level. It is however trading extrmely strongly, so it could be hit tonight already, especially with the data out of Germany causing newly-woken American traders to reconsider.This could well be another tuesday gold frenzy!