- Gold prices fell after briefly pulling back and confirming a primary downward trend, with declining momentum strengthening the bearish signal. Further support is expected at $1200/ounce and a breach could push prices down to a target of $1000. - Silver is testing key support at $18.50/ounce. A break below this level would also signal a downtrend for silver and additional confirmation of bearish sentiment for gold. - Both a strengthening US dollar and rising Treasury yields put downward pressure on gold prices. The dollar index is testing resistance at 2013 highs while Treasury yields have broken above resistance and are consolidating near 2.60%, suggesting potential for further gains.

1. Gold and silver fall
By Colin Twiggs
September 17th, 2014 9:00 p.m. EDT (11:00 a.m. AEST)
Advice herein is provided for the general information of readers and does not have regard to any particular person's
investment objectives, financial situation or needs. Accordingly, no reader should act on the basis of any information
contained herein without first having consulted a suitably qualified financial advisor.
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Gold & Silver

2. Gold respected the new resistance level at $1240 after a brief retracement, confirming a primary down-trend.
Declining 13-week Twiggs Momentum below zero strengthens the bear signal. Expect further support at $1200/ounce,
breach would add further confirmation.
* Target calculation: 1200 - ( 1400 - 1200 ) = 1000
Silver is testing primary support at $18.50 per ounce. Breach of support would signal a down-trend and strengthen the
bear signal for gold. Respect is unlikely, but would suggest further consolidation.

3. Interest Rates and the Dollar
A rising Dollar and rising Treasury yields both put downward pressure on gold.
The Dollar Index is testing resistance at the 2013 high of 84.50. Rising 13-week Twiggs Momentum above zero
signals a primary up-trend. Reversal below 81.50 is most unlikely. Upward breakout would offer a long-term target of
89*.

4. * Target calculation: 84 + ( 84 - 79 ) = 89.00
The yield on ten-year Treasury Notes broke resistance at 2.50 percent and is now consolidating at 2.60. Follow-through
above 2.65 would signal an advance to 3.00. Respect would signal a decline to 2.00 percent*. 13-Week
Twiggs Momentum recovery above zero would suggest a primary up-trend.
* Target calculation: 2.65 + ( 2.65 - 2.30 ) = 3.00