Gold corrects as Dollar rallies

The Dollar Index continues to test resistance at its former primary support level of 93. This is a bear market rally. Rising crude prices are bearish for the Dollar and respect of resistance would confirm another decline.

Dollar Index

*Target: 93 – ( 103 – 93 ) = 83

Nymex Light Crude has advanced since breaking resistance at $50/barrel. Target for the primary advance is $54/barrel. Retracement to test the new support level remains likely but respect would confirm the up-trend.

Nymex Light Crude

Spot Gold continues in a primary up-trend. Political tensions are high and a weaker Dollar would drive another gold advance. A correction that respects the rising trendline would signal a primary advance. Follow-through above $1350 would confirm. A Trend Index trough above zero, indicating buying pressure, would strengthen the bull signal.

Spot Gold

Target 1300 + ( 1300 – 1200 ) = 1400

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