Dollar breaks support, Gold rises

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*.

Dollar Index

*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.

USDCNY

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.

Spot Gold

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.

Nymex Light Crude

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