Dollar breakout threatens Gold

The Dollar index broke through LT resistance at 97.50, signaling an advance to 100. Expect retracement to first test the new support level.

Dollar Index

A stronger dollar is likely to weaken Gold. Spot Gold is testing the base of its descending triangle, at $1280/ounce. A false break, with recovery above $1280 this week, warns of strong support but the overall trend is bearish. Breach of $1280 would offer a target of primary support at $1180.

Spot Gold in USD