Gold breaks support at $1600/ounce

Spot Gold broke its long-term rising trendline and support at $1600, warning of a primary down-trend. Reversal of 63-day Twiggs Momentum below zero strengthens the signal. Failure of primary support at $1500 would confirm, offering a target of $1200*. Recovery above $1600 would indicate all bets are off.

Spot Gold

* Target calculation: 1500 – (1800 – 1500) = 1200

The Gold Bugs Index, representing un-hedged gold stocks, has been suggesting a gold down-trend for some time.

Gold Bugs Index

The Dollar Index broke through resistance at 80 on the weekly chart and a 63-day Twiggs Momentum trough above zero indicates another rally. Expect a test of 82 in the next few weeks, mirrored by a weakening gold price.

US Dollar Index Weekly Chart

* Target calculation: 82 + ( 82 – 78 ) = 86

5 thoughts on “Gold breaks support at $1600/ounce

  1. phillip ross hammond says:

    I have been following Colin Twiggs for well over seven years now and have found him to more reliable than any news letters I have received especially the ones that trap you. There are many platforms coming out that could make you money but the best platform is your brain Incredible charts are truly incredible with loads of information available for learning and I have picked a downward trend with the long term of around the 1200 mark also my platform is built on the information Incredible Charts has to offer and Colins news letters so have a good look at the information on education available to be confident successful traders. Good Luck everyone.

  2. Colin, I have been tracking the ticker $GLD for some time on stock-twits.com illustrating charts and the price action. I predicted that $GLD would break the trend line and head lower last week. I have been saying to sell the ticker since it was $175 area months ago. Your chart above shows the exact same trend line. I want to thank you for conformation and validation of my TA and of my charts.
    Thank you
    Michael

  3. kun says:

    What do you mean by “Recovery above $1600 would indicate all bets are off.” ? Do you mean if gold price is back to $1600 the primary uptrend will continue ?

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