The Dollar Index continues to test primary support between 92 and 93. Consolidation or a weak rally is likely but Twiggs Trend Index warns of long-term selling pressure. Breach of support would signal another primary decline, offering a long-term target between 83 and 84* — a bullish sign for gold.
*Target: 93 – ( 103 – 93 ) = 83
Crude continues to test resistance at $50/barrel. Breakout would be bullish for gold but respect is more likely and would test primary support at $40/barrel.
Gold encountered strong resistance at $1300/ounce. Expect retracement to test support at $1270 and $1250. Reversal below $1250 remains unlikely.
Target 1300 + ( 1300 – 1200 ) = 1400