Dollar falls and gold rises

The Dollar Index faced resistance at 80.50, breaking below 80 to confirm a primary decline. Breach of the 2012 lows at 79 would confirm a long-term target of 76.50. The falling dollar is boosting gold prices.

The yield on ten-year Treasury Notes breached the 2.60 percent, heading for primary support at 2.40% Falling yields depress the dollar while lowering the opportunity cost of holding precious metals, exerting upward pressure on gold.

Spot gold recovered above $1300 and its descending trendine on the daily chart, suggesting another advance. Breakout above $1340 would confirm, offering a target of 1360. 

Add caption