Spot gold tests $1530

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*.

US Dollar Index

* 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.

Spot Gold

* Target calculation: 1500 – ( 1800 – 1500 ) = 1200

3 Replies to “Spot gold tests $1530”

  1. 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

  2. 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

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