Gold advance likely

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.

Dollar Index

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.

Spot Gold

Breakout above $1300 is likely and would signal a test of the 2016 high at $1375.

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