China’s Yuan broke support at 14.50, warning of another decline.
A weaker Yuan is likely to lead to Dollar strength. The Dollar Index respected support at 94 and follow-through above 96 would confirm another advance.
A strengthening Dollar would weaken demand for Gold. Gold broke resistance at $1210/ounce, commencing a bear market rally. Expect resistance at $1250. Reversal below support at $1180 is unlikely at present but would warn of a decline to the 2015 low at $1050/ounce.
The Aussie Dollar is in a primary down-trend with descending Trend Index peaks below zero warning of strong selling pressure.
The combination of a gold bear rally and a weak Aussie Dollar prompted a rally among Australian gold miners. The All Ordinaries Gold Index (XGD) broke resistance at 4900 and is testing 5100. Ascending troughs on the Trend Index indicate buying pressure and a test of 5400 is likely.
