The Dollar Index followed through after last week’s breakout above resistance at 81.50/82.00, confirming the fresh advance signaled by a 63-day Twiggs Momentum trough above zero. Target for the advance is 86.00*.
* Target calculation: 82 + ( 82 – 78 ) = 86
On the daily chart, spot gold tests medium-term support at $1530/ounce. Long tails indicate buying support but the rising dollar continues to apply downward pressure. Breach of support and follow-through below $1500 would signal a long-term decline to $1200/ounce*. Declining 63-day Twiggs Momentum (below zero) already indicates a primary down-trend. Recovery above $1600 is less likely but would indicate that the down-trend is weakening.
* Target calculation: 1500 – ( 1800 – 1500 ) = 1200
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
billones gatados hace unos meses para esto, el ORO .. chet you buy at 17,800 in feb and now i have at 1,568 this is chet ..over 250 dlls in loses.. the goold is over price
Paul krugman does not have a great mind. He could not see the problems coming therefore could not have anything useful to say about how to fix it. See bill bonner’s critique of his work. Bill saw the dot com and housing bust coming way before they happened. Cheers
I’m also a fan of Bill Bonner. His book Empire of Debt is great reading.