On September 1st, gold touched the previous low at 1,692.50. Price approached this level again on September 7th and failed to breach significantly lower. The strong reaction represented by the large bullish bar is a sign that there is buying pressure. Demand is potentially there. I think there will be a clearer indication of this once price breaches above the 1,718.50 level. If this breakout sustains, the probability of further upside is strong.