The Dollar Index continues to test support at 100 despite strengthening interest rates. China’s sell-off of foreign reserves to support the Yuan may be contributing to this weakness.
Spot Gold is consolidating below resistance at $1300/ounce. A more confrontational US foreign policy is contributing to global uncertainty and demand for precious metals.
Breakout above $1300 is likely and would signal a test of the 2016 high at $1375.