![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-gold.png?w=525&ssl=1\")
<\/p>\nGold is consolidating in a narrow range between $1300 and $1350\/ounce. Penetration of the descending trendline indicates that a bottom is forming. Reversal below $1300 would suggest another test of primary support at $1200, but breakout above $1350 is as likely and would target $1400.<\/p>\n
<\/p>\n
A rally to $1400 would test the long-term descending trendline as shown on the monthly chart.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-gold-m.png?w=525&ssl=1\")
<\/p>\n
Spot silver has made a weaker rally over the last month and breakout below the rising flag would warn of another decline, with a target of $16.50*. Declining silver would be a bearish sign for gold.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-silver.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 19.5 – ( 21.5 – 18.5 ) = 16.5<\/p>\n
The Dollar Index found short-term support at 81.50. Penetration would indicate a test of primary support at 80.50. Recovery above 82.50 is unlikely, but would suggest the correction is over. Another 13-week Twiggs Momentum trough above zero would indicate the primary up-trend is intact. Breakout above 84.50 is some way off, but would signal an advance to the 2009\/2010 highs around 90.00.
\n![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-dxy2.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 84 + ( 84 – 79 ) = 89<\/p>\n
Nymex WTI light crude is retracing after a sharp rally and is likely to find support between $98 and $100\/barrel. Expect the spread with Brent crude to narrow as the US recovery outstrips Europe.<\/p>\n
![\"Brent](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-crude.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 98 + ( 98 – 86 ) = 110<\/p>\n
Copper is testing long-term support at $6800\/ton. Follow-through below $6700 would confirm another primary decline.
\n![\"Dow](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-copper.png?w=525&ssl=1\")
\nCommodity prices are primarily driven by Chinese demand. With the Shanghai Composite Index testing its 2012 low (1950), breakout would signal a decline to its 2008 low (1660) and drag commodity prices lower. Dow Jones-UBS Commodity Index breach of long-term support at 125\/126 would confirm, targeting its 2009 low at 100*. Not good news for Australian resources stocks, even if the impact is cushioned by a falling Aussie Dollar.<\/p>\n
![\"Dow](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-01-dubs.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 125 – ( 150 – 125 ) = 100<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold is consolidating in a narrow range between $1300 and $1350\/ounce. Penetration of the descending trendline indicates that a bottom is forming. Reversal below $1300 would suggest another test of primary support at $1200, but breakout above $1350 is as likely and would target $1400. A rally to $1400 would test the long-term descending trendline … <\/p>\n