BCMel

BCMel Updated 

US dollar index has broken a fast uptrend channel within a wider ascending wedge formation but it has yet to test and break the 50-day moving average. Stock weakness may help hold the dollar high, but underlying US bond worries over inverted yield curves may do the opposite. There is also a strong divergence signal of descending MACD peaks against the DXY uptrend.

BCMel

Gold bulls hope this is a channel-bottom test for gold futures and not a major bearish move. The bottom looks to be around 1212.00, also around a 50% Fibonacci retracement from gold's recent highs.

BCMel

The next few days could be pivotal in gold's possible retesting of lows in the 1160 zone. MACD has turned bearish and gold has still failed to break out of the multi-month downtrend channel. If we break the previous low in the flag formation, it will be the return of the bears.