Spot gold’s recovery above $1250/ounce suggests another bear rally. The primary trend remains down and breach of support at $1200/ounce would signal a decline to $1000*. The 63-day Twiggs Momentum peak below zero also warns of a down-trend, but a weaker dollar would boost gold prices.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000
Dollar Index
The Dollar Index broke support at 80.50, signaling another test of primary support at 79.00. Twiggs Momentum declining (below zero) warns of a primary down-trend. Breach of primary support would confirm. Recovery above 80.50 is less likely, but would suggest a primary advance — confirmed if resistance at 81.50 is broken.
* Target calculation: 81.5 + ( 81.5 – 79 ) = 84