Gold finds short-term support

The greenback continues its bear market rally, assisted by the new tax bill and the December Fed rate hike. Breakout above resistance at 95 would signal a primary up-trend, a strong bear signal for gold, but the Dollar still has to overcome concerns over North Korea.

Dollar Index

Gold found short-term support at $1240/ounce and recovery above the descending trendline would indicate that the down-trend is weakening. Breach of primary support at $1200 is unlikely but would be a strong bear signal, warn of a primary down-trend.

Spot Gold

The All Ords Gold Index is also correcting. Breach of primary support at 4300 would warn of a primary down-trend.

All Ordinaries Gold Index

But I expect this to be cushioned by further weakness on the Aussie Dollar.

Australian Dollar/USD

Helped in part by a declining yield differential between Australian and US government bonds.

Differential between Australian and US 10-year Government Bonds

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