The Dollar Index found short-term support at 89, having respected new resistance at 91. Trend Index peaks below zero warn of strong selling pressure. Expect a further decline to 87*.
* Target calculation: 91 – (95 – 91) =87
Gold respected resistance at $1350 as the Dollar found short-term support. Bearish divergence on the Trend Index warns of secondary selling pressure, warning of a correction.
* Target calculation: 1350 + (1350 – 1250) = 1450
A strong Aussie Dollar is holding back the All Ordinaries Gold Index. Respect of the rising trendline would signal another advance.
Further (USD) Dollar weakness is likely to boost gold prices.