The Dollar is retracing to test resistance. Dollar Index respect of the former primary support level at 91 would confirm a primary decline with a target of 87*. Trend Index peaks below zero warn of strong selling pressure.
* Target calculation: 91 – (95 – 91) =87
Gold hesitated below resistance at $1350 as the Dollar retraced. Trend Index above zero indicates an up-trend. Breakout above $1350 is likely and would signal an advance with a target of $1450*.
* Target calculation: 1350 + (1350 – 1250) = 1450
A strong Aussie Dollar is holding back the All Ordinaries Gold Index. Respect of the rising trendline is likely and recovery above 5000 would signal another advance.
Cessation of Chinese purchases of US Treasuries may not be permanent but will fuel Dollar weakness, improve the competitiveness of US exports in international markets, and boost dollar-denominated gold prices.
