Interesting turn in the gold/dollar saga.
The US Dollar Index is strengthening, testing resistance at 91. Bullish divergence on the Trend Index indicates buying pressure.
The Dollar is strengthening despite rising crude prices which generally weaken the Dollar.
Spot Gold is retreating from resistance at $1350/ounce. Bearish divergence on the Trend Index warns of selling pressure. Expect a test of $1300.
But Australian gold stocks are strengthening. The All Ordinaries Gold Index is rallying to test resistance between 5000 and 5100.
That’s because the Australian Dollar is falling at a faster rate than the Dollar Index is strengthening.
So the price of gold in Australian Dollars is actually rising.
Leaving Australian gold stocks unperturbed by the strengthening US Dollar.