![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-16-gold.png?w=525&ssl=1\")
<\/p>\nGold broke the rising trendline and support at $1440\/$1450, indicating another test of primary support at $1320. Target of $1200* for the decline would be confirmed by a breach of primary support.<\/p>\n
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* Target calculation: 1350 – ( 1500 – 1350 ) = 1200<\/p>\n
Ten-year treasury yields broke resistance at 1.80% and are headed for a test of 2.00\/2.05%. Breach of that level would signal a primary up-trend, but the thirty-year secular bear trend (in yields) remains downward and would only be reversed by a rise above 4.00%. Respect of resistance at 2.05% remains likely and would indicate another down-swing to test primary support at 1.60%. A weak inflation outlook, as indicated by falling gold prices, would decrease demand for stocks (as an inflation hedge) and increase demand for bonds.<\/p>\n
![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-16-tnx.png?w=525&ssl=1\")
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The Dollar is strengthening, with the Dollar Index testing resistance at 84. Breakout would signal a test of long-term resistance at 89\/90*.
\n![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-16-dxy.png?w=525&ssl=1\")
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* Target calculation: 84 + ( 84 – 79 ) = 89<\/p>\n
Brent Crude respected resistance at $106\/barrel, indicating a down-swing to $92*. Nymex WTI respected resistance at $98 and is likely to re-test resistance at $85\/barrel. A classic pair trade, the spread between the two is likely to narrow as the European economy under-performs.<\/p>\n
![\"Brent](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-16-crude.png?w=525&ssl=1\")
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Commodity prices continue to fall, with the Dow Jones\/UBS Commodity Index headed for primary support at 125\/126. The major driver of commodity prices is China and reversal of the current down-trend, on both indices, appears some way off despite a US recovery.<\/p>\n
![\"Dow](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-05-16-dubs.png?w=525&ssl=1\")
<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold broke the rising trendline and support at $1440\/$1450, indicating another test of primary support at $1320. Target of $1200* for the decline would be confirmed by a breach of primary support. * Target calculation: 1350 – ( 1500 – 1350 ) = 1200 Treasury Yields Ten-year treasury yields broke resistance at 1.80% and are … <\/p>\n