Gold rallies as the Dollar weakens
By Colin Twiggs
June 26th, 2013 3:00 a.m. EDT (5:00 p.m. AEST)
- Treasury yields weaken
- The Dollar weakens
- Gold rallies
Interest Rates and the Dollar
The yield on ten-year Treasury Notes is headed for another test of primary support at 2.50 percent. Follow-through below 2.40 would would signal a decline to 2.00 percent*. 13-Week Twiggs Momentum continues below zero, indicating weakness. Recovery above the descending trendline is unlikely at present, but would suggest another attempt at 3.00 percent.
* Target calculation: 2.50 - ( 3.00 - 2.50 ) = 2.00
The Dollar Index retreated below resistance after a false break above 80.50. Recovery above 80.50 would suggest an advance to 81.50, but respect of zero by 13-week Twiggs Momentum warns of continuation of the primary down-trend.
A weaker Dollar helped gold break its descending trendline, ending the correction. Expect a test of $1400. Whipsawing of 13-week Twiggs Momentum around the zero line, however, indicates indecision and reversal below zero would warn of further weakness. Retreat below $1280 would warn of a test of primary support at $1200.
The world is a thing of utter inordinate complexity and richness and strangeness that is absolutely awesome. I mean the idea that such complexity can arise not only out of such simplicity, but probably absolutely out of nothing, is the most fabulous extraordinary idea. And once you get some kind of inkling of how that might have happened, it's just wonderful. And ....the opportunity to spend 70 or 80 years of your life in such a universe is time well spent as far as I am concerned.
~ Douglas Adams, author of The Hitchhiker's Guide to the Galaxy