Australian gold stocks rally despite stronger Dollar

Interesting turn in the gold/dollar saga.

The US Dollar Index is strengthening, testing resistance at 91. Bullish divergence on the Trend Index indicates buying pressure.

Dollar Index

The Dollar is strengthening despite rising crude prices which generally weaken the Dollar.

WTI Light Crude

Spot Gold is retreating from resistance at $1350/ounce. Bearish divergence on the Trend Index warns of selling pressure. Expect a test of $1300.

Spot Gold

But Australian gold stocks are strengthening. The All Ordinaries Gold Index is rallying to test resistance between 5000 and 5100.

All Ordinaries Gold Index

That’s because the Australian Dollar is falling at a faster rate than the Dollar Index is strengthening.

AUDUSD

So the price of gold in Australian Dollars is actually rising.

Spot Gold in Australian Dollars

Leaving Australian gold stocks unperturbed by the strengthening US Dollar.

4 thoughts on “Australian gold stocks rally despite stronger Dollar

  1. John Bannister says:

    In business and investing the only certainty is what has happened and no one can agree on that (unless you have charted it).
    JBB

  2. Solomon says:

    That may be true, but ………………….. there’s no life left in US stocks** …. sorry … the bull market ended during the last week of January 2018 – just in case you forgot

    ** https://thepatientinvestor.com/index.php/2018/04/26/life-left-in-us-stocks/

    • ColinTwiggs says:

      Technicals are certainly weak but fundamentals are headed in the other direction. I believe probabilities are still 2:1 that the S&P 500 makes a new high before end of the year.

      I will change those probabilities if price breaks 2580 but certainty is an illusion caused by the absence of knowledge.

      • Solomon says:

        1+1 = 2 ; I am certain of that ; no illusion ; no absence of knowledge.

        🙂

        Great forum potential here for the moderator to encourage dialogue, a following, a brand-loyal set of commentators and greater prominence. – work on that = it is needed. Cheers

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