Spot Gold is consolidating between $1740 and $1800, with the rising dollar halting its advance. Penetration of the rising trendline warns that momentum is slowing and breach of support at $1740 would signal another test of $1700.
* Target calculation: 1900 + ( 1900 – 1600 ) = 2200
The weekly chart shows gold continuing its long-term ascent in a narrow trend channel. Breakout below $1600 would warn of a reversal.
The gold-oil ratio has fluctuated in a far narrower range since mid-2009 and it may take some years before we see another overbought/oversold signal.