Gold continues to find resistance at $1210/ounce. Trend Index peaks below zero warn of LT selling pressure but rising troughs suggest a secondary rally. Respect of resistance and the declining trendline would warn of another decline, offering a long-term target of the 2015 low at $1050/ounce.
The Dollar Index found support at 94. Follow-through above 96.50 would confirm another advance. A strengthening Dollar is likely to weaken demand for Gold.
The Aussie Dollar broke support at 71 US cents, prompting a weak rally among Australian gold miners. The All Ordinaries Gold Index (XGD) is ranging between 4550 and 4900. Gold is more volatile than the currency and likely to determine long-term direction. A Trend Index peak below zero would signal continuation of the down-trend.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.