This just reaffirms expectations that the German national reading should see headline annual inflation come in similar to July at around -0.1% y/y or 0.0% y/y. As mentioned earlier, all the state readings generally just give out the impression that price pressures remain more subdued in August - similar to what we saw in France,Spain and Italy.
As I discussed in the previous review, the Gold managed to reach my Friday's target at $1,975 but It found sellers there, which is sign that there is potential for the further downside rotation.
Further Development
Analyzing the current trading chart of the Gold, I found that the buyers got exhausted today and the downside roattion would be probably to correct strong upside movement from Friday.
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Cocoa and Coffee and on the bottom Lean Hogs and Lumber.
Key Levels:
Resistance: $1,975
Support level : $1,950