Gold is up $1 to $1728 today after a quick roundtrip to $1718 at the beginning of US trading. India has begun the five-day Diwali festival today, which is a major gold-buying event but indications are for lower demand this year.

The rebound last week gives gold some breathing room down to $1700. A slide to that level would set up and inverted head and shoulders bottom, that would potentially target $1800. A close above the 55-day moving average would also be a bullish signal.

On the downside, a break of $1670 could spark a swift selloff.