Gold breaks $1180 support
By Colin Twiggs
June 9th, 2015 3:00 a.m. ET (5:00 p.m. AEDT)
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Core CPI continues to track close to the Fed target of 2.0 percent (CPI All Items is distorted by falling oil prices).
Long-term interest rates are in a primary up-trend, with 10-year Treasury note yields breakout above resistance at 2.25% offering a target of 3.0 percent. Rising 13-week Twiggs Momentum above zero strengthens the signal.
The Dollar Index continues to test support at 95. Breach would warn of a test of the primary level (and rising trendline) at 93. A sharp decline on 13-Week Twiggs Momentum indicates this is likely.
Gold
A weakening dollar would boost demand for gold, but rising interest rates counter this. Spot gold broke medium-term support at $1180/ounce, warning of a test of the primary level at $1140. 13-Week Twiggs Momentum peaks below zero suggest continuation of the primary down-trend. Failure of $1140 would offer a long-term target of $1000*.
* Target calculation: 1200 - ( 1400 - 1200 ) = 1000
We should never lose an occasion. Opportunity is more powerful even than conquerors and prophets.
~ Benjamin Disraeli
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