The Dollar Index broke support at 92. Retracement may test the new resistance level but respect is likely would confirm the long-term target of 83*.
*Target: 93 – ( 103 – 93 ) = 83
The Dollar is also falling fast against the Chinese Yuan. Breach of primary support at 6.60 and decline of the Trend Index below zero both warn of a primary down-trend.
A weak Dollar and rising geo-political tensions (North Korea) are bullish for gold. The immediate target is the 2016 high of $1375. Rising Twiggs Trend Index confirms buying pressure. Retracement that respects support at $1300 would strengthen the bull signal.
Target 1300 + ( 1300 – 1200 ) = 1400
Another major influence on gold is crude oil prices. So far, crude has respected resistance at $50 despite the weaker Dollar. Softer crude prices would be bearish for gold.