A proximity detector includes an offset circuit for bringing at least one of a magnetic field signal and a tracking signal towards the other one of the magnetic field signal and the tracking signal when the detector output signal changes state. A magnetic field-to-voltage transducer provides the magnetic field signal indicative of an ambient magnetic field and a peak detector responsive to the magnetic field signal provides the tracking signal which substantially follows the magnetic field signal. A comparator generates the detector output signal which changes state when the magnetic field signal varies from the tracking signal by a predetermined amount.