The Dollar Index is testing primary support between 92 and 93. Expect consolidation or a weak rally but Twiggs Trend Index warns of sustained selling pressure. Breach of support would signal another primary decline, offering a long-term target between 83 and 84* — a bullish sign for gold.
*Target: 93 – ( 103 – 93 ) = 83
Crude respected resistance at $50/barrel, suggesting another test of support at $40/barrel, continuing the primary down-trend. Twiggs Trend Index again warns of selling pressure. Breakout above $50 is now unlikely.
Gold is headed for a test of resistance at $1300/ounce, while a rising Twiggs Trend Index signals buying pressure. Breakout above $1300 is likely and would indicate another primary advance, with a target of $1400*. Reversal below $1250 is now unlikely but would warn of another test of primary support at $1200.
Target 1300 + ( 1300 – 1200 ) = 1400
Silver broke through resistance at $17/ounce, a bullish sign for gold. Retracement that respects the new support level would strengthen the bull signal, indicating a test of the April high at 18.50.