FX.co ★ Analysis of Gold for August 31,.2020 - Upward target at $1.975 has been reached but potential for the downside rotation towards $1.950

Latest data released by Destatis - 31 August 2020

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

1. Support level : $1,950