Gold hurts as Dollar rallies

Nymex Light Crude respected its new support level at $50/barrel. Follow-through above $52 would signal another advance, with a target of $54/barrel. A primary up-trend would be bearish for the Dollar and bullish for gold.

Nymex Light Crude

At present the Dollar Index continues its bear market rally, testing resistance at 94. Breakout is fairly likely but expect another correction to test primary support at 91. After all, this is a bear market.

Dollar Index

Spot Gold is undergoing a deep correction in response to the Dollar rally. But political tensions are high and the Dollar is in a bear market. Respect of the rising trendline (around $1250) would signal another primary advance. Follow-through above $1350 would confirm.

Spot Gold

Target 1300 + ( 1300 – 1200 ) = 1400

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