Abstract: An inductive proximity sensor and a method of proximity sensing are described that permit targets of interest to be detected despite the presence of external magnetic fields due to AC or DC sources, such as resistive welding machines. The sensor has a pair of matched coils positioned adjacent to one another along a common central axis. The coils are coupled in series with oscillator and detecting circuitry, that also serves to drive a switching device. The coils are wound for current flow in opposite directions and produce oscillating electro-magnetic fields for detecting the targets in response to signals from the oscillator and detecting circuitry. Currents in the coils induced by strong external magnetic fields produces an additional components of the coil field which essentially cancel one another. The sensing field of the coil assembly may be shaped and directed by cooperation of the fields of the two coils and by appropriate shielding around one or both coils.