Gold strengthens as the Dollar falls

Gold rallied strongly on the back of a weak Dollar. A rising Trend Index indicates buying pressure. Breakout above $1350 is likely and would signal a fresh advance.

Spot Gold

The Dollar is weakening which is bullish for gold. Follow-through of the Dollar Index below 91 would signal a primary decline with a target of 87*. Trend Index peaks below zero warn of strong selling pressure.

Dollar Index

* Target calculation: 91 – (95 – 91) =87

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