The XAU is one step ahead of the smaller cap index GDXJ as it’s breaking the neckline today signaling the completion of it’s H&S base. As I showed yesterday, on the HUI 60 minute chart, whenever you get a false breakout and then the price action takes you back into the original pattern, chances are it was a shakeout just before the big move gets underway. The specialist, market maker, will clear his books of all the stop loss orders which resides just below an importing support zone. He will then sell his bounty to the Johnny come latelys later on when the impulse leg becomes mature. This is just typical market action.

XAU daily H&S breakout.