Spot gold finds support
By Colin Twiggs
January 12th, 2011 2:00 a.m. ET (6:00 p:m AET)
Spot gold found support at $1500/ounce. Failure of this level would confirm a primary down-trend. Breach of the descending trendline would indicate that a base is forming, while recovery above $1800 would indicate a fresh primary advance to $2300*. We are unlikely to witness another bull-trend, however, unless the Fed introduces QE3.
* Target calculations: 1900 + ( 1900 - 1500 ) = 2300
US Dollar Index
The Dollar Index continues in a primary up-trend after twice successfully testing support at 79.50/80.00. Target for the advance is 85.00*.
* Target calculations: 80 + ( 80 - 75 ) = 85
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