Gold’s massive H&S bottom continues to develop, but overhead resistance could be stiff.  The technical significance of the resistance in the 1350 to 1390 zone in Gold cannot be overstated. This zone has contained rallies in Gold on five occasions (including the current rally), as shown on the weekly chart.

My bias is that Gold will rip through resistance to commence a new bull trend (see monthly chart).

Nevertheless, I cannot ignore the possibility that Gold might turn down hard from the overhead resistance – a decline toward 1230 is possible. I will closely monitor Gold with an interest to be long – I may use the London PM Gold fix as a proxy for a breakout.