Gold softens as market contemplates another rate rise

The Dollar continues to strengthen, with the Dollar Index testing short-term resistance at 95. Another rate rise from the Fed in December would strengthen the Dollar further. Medium-term target for the extended rally is 97.

Dollar Index

Spot Gold is under selling pressure, with the Trend Index declining to zero, and is likely to test support at $1260/ounce. Breach of support would warn of another decline, with a target of $1200.

Spot Gold

But the All Ords Gold Index ($XGD) is rising, headed for a test of resistance at 5000. Breakout would signal a new primary advance.

All Ords Gold Index ($XGD)

…Largely because the AUD price of gold is rising …as the Australian Dollar weakens. There are still signs of resistance though, with the Trend Index unable to cross above zero. Reversal below $1620 would be a strong bear signal.


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