The Dollar price of gold breached support at $1240/ounce, signaling a primary down-trend. A long tail indicates active buyers and we can expect retracement to test the new resistance level at $1250.
The Dollar Index continues to test strong resistance at 95.
But Chinese selling to support the Yuan has not materialized in sufficient magnitude to reverse Dollar strength. Dollar Index breakout above 95 is likely to spur selling of gold.
The Australian Dollar has not weakened sufficiently to protect local gold miners, with the price of Gold in Australian Dollars falling sharply.
The All Ordinaries Gold Index (XGD) broke support at 4950. Expect a test of 4600.
Downside risk to Australian gold stocks is rising.