Spot Gold respected resistance at $1180/ounce and is headed for another test of support at $1080. Declining 13-week Twiggs Momentum with peaks below zero confirms a strong primary down-trend. Breach of support at $1080 would offer a target of $1000/ounce*.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000
Barrick Gold, one of the largest global gold producers, has already broken support at $6.50, signaling another decline (with a target of $4.50).
The Gold-Oil ratio remains in overbought territory above 20, suggesting continuation of the bear market for gold.
Long-term crude prices have resumed their fall, with June 2017 (CLM2017) futures headed for another test of support at $48/barrel after a bear rally respected the descending trendline. If long-term crude prices break support at $48, gold is not likely to hold above $1000/ounce.