A declining dollar is the one measure supporting demand for gold. The Dollar Index broke support at 95, warning of a test of the primary level at 93. Decline of 13-Week Twiggs Momentum below zero would warn of a primary down-trend. Breach of primary support would confirm, offering a target of 88*.
* Target calculation: 93 – ( 98 – 93 ) = 88
A declining dollar would be good news for the US economy, improving the competitiveness of exporters in global markets and local manufacturers competing against imports in domestic markets.