Gold encounters resistance as Dollar finds support

By Colin Twiggs
March 1st, 2012 4:30 a.m. ET (8:30 p:m AET)

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Spot gold ran into resistance at $1800/ounce and is testing medium-term support at $1700. Recovery of 63-day Twiggs momentum above zero signals a primary up-trend but we will not have confirmation until there is a clear break through $1800.

* Target calculation: 1800 + ( 1800 - 1500 ) = 2100

The Dollar Index is conversely testing support at 78.00. 63-Day Twiggs Momentum may be slowing but the dollar remains in a primary up-trend. Respect of support would signal continuation — and weaker demand for gold.

* Target calculation: 80 + ( 80 - 75 ) = 85

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