Seasons Greetings/Gold bounces

By Colin Twiggs
December 22, 2017 10:00 p.m. EDT (2:00 p.m. AEST)

This is my last newsletter for the year. I will return after the New Year, on January 8th. Our office will remain open but please use a support ticket if you require technical support.

Please note changes to the Disclaimer.

Currumbin Valley, Queensland - December 2017

We wish all our readers peace and goodwill over the Christmas season
and prosperity in the year ahead.

Gold Bounces

Gold bounced off support at $1240/ounce, ending the week with a strong rally. Penetration of the descending trendline would indicate the down-trend has weakened, while breakout above $1300 would suggest another advance. Twiggs Trend Index close to zero still indicates hesitancy.

Spot Gold

The greenback is weakening which is bullish for gold. Dollar Index reversal below 93 (and the rising trendline) would indicate another test of primary support at 91. A major Trend Index peak below zero would warn of another primary decline with a target of 87*.

Dollar Index

* Target calculation: 91 - (95 - 91) =87

Australia's All Ords Gold Index is headed for another test of long-term resistance at 5000. Breakout would signal a primary advance.

All Ordinaries Gold Index

A weakening Aussie Dollar would strengthen demand for gold stocks. Respect of resistance at 77.5 US cents by the current bear rally would warn of a decline to test primary support at 73.5.

Australian Dollar AUDUSD

The biggest mistake in investing is believing the last three years is representative of what the next three years is going to be like.

~ Ray Dalio

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Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

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