The euro dipped against [the] dollar on Thursday as the European Central Bank’s decision to extend its bond purchases into 2018 at a reduced rate spurred selling of the single currency.
The Dollar spiked upward on the Euro fall, with the Dollar Index breaking resistance at 94 to signal another (bear) rally. Target for the extended rally is 97.
Spot Gold fell in response to the Dollar, testing support at $1260/ounce. Penetration of support and the rising trendline would warn that the up-trend is losing momentum.
But the Euro price of gold hasn’t budged.
Nor has the price of gold in Australian Dollars.
Which is why the All Ords Gold Index ($XGD) remains bullish, building a solid base for further gains. A higher low suggests buying support and breakout above 5000 would signal a new primary advance.