Tag: Spot Gold

Spot Gold broke its long-term rising trendline and support at $1600, warning of a primary down-trend. Reversal of 63-day Twiggs Momentum below zero strengthens the signal. Failure of primary support at $1500 would confirm, offering a target of $1200*. Recovery above $1600 would indicate all bets are off.

* Target calculation: 1500 – (1800 – 1500) = 1200

The Gold Bugs Index, representing un-hedged gold stocks, has been suggesting a gold down-trend for some time.

The Dollar Index broke through resistance at 80 on the weekly chart and a 63-day Twiggs Momentum trough above zero indicates another rally. Expect a test of 82 in the next few weeks, mirrored by a weakening gold price.

* Target calculation: 82 + ( 82 – 78 ) = 86

Spot Gold continues its consolidation between $1600 and $1700 per ounce, while testing the long-term rising trendline.  Recovery above $1700 would suggest another primary advance; confirmed if an inverted head and shoulders formation is completed by a rise above $1800. 63-Day Twiggs Momentum oscillating around zero indicates uncertainty, however, and failure of support at $1600 would warn of a long-term trend change and test the primary level at $1500.

* Target calculation: 1800 + (1800 – 1600) = 2000; 1500 – (1800 – 1500) = 1200

The US Dollar Index reflects the inverse of gold, with a potential triple bottom threatening to end the long-term down-trend on the Monthly chart. 50-Week Twiggs Momentum is oscillating around the zero line, indicating uncertainty.

On the weekly chart, the dollar has met strong resistance at 80 and reversal below support at 78 would  warn of another test of the 2011 low at 73. Reversal of 63-day Twiggs Momentum below zero would strengthen the bear signal.

* Target calculation: 82 + ( 82 – 78 ) = 86; 78 – ( 82 – 78 ) = 74

The Dollar Index is consolidating on the weekly chart, indicating uncertainty. Respect of resistance at 80.00 would warn of another test of support at 78.00, while breakout would indicate continuation of the primary up-trend. In the longer term, breakout above 82.00 would offer a target of 86.00*, while failure of support at 78.00 would signal a primary down-trend. Reversal of 63-day Twiggs Momentum below zero would also warn of a primary down-trend.

* Target calculation: 82 + ( 82 – 78 ) = 86

Gold remains undecided despite a sharp fall on the Gold Bugs Index. The long tail on last week’s candle for spot gold indicates buying pressure at the $1600 support level. Recovery above $1700 would respect the long-term trendline and indicate another test of $1800, suggesting the start of a new up-trend. Breakout above $1800 would confirm, offering a target of $2000/ounce*. A 63-day Twiggs Momentum trough predominantly above the zero line would strengthen the bull signal. Reversal below support at $1600, however, would warn of a primary down-trend — confirmed if support at $1500 is broken.

* Target calculation: 1800 + ( 1800 – 1600 ) = 2000

The Gold Bugs Index, representing un-hedged gold stocks, is in a clear primary down-trend since breaking support at 500. Peaks below zero on 63-day Twiggs Momentum also signal a strong down-trend.