CPI +0.9% vs +0.9% y/y prelim
The preliminary report can be found here. No change to the initial release as this reaffirms a slight drop in consumer inflation after the January bounce - owing to special circumstances such as the VAT change in Germany.
Expect more volatile (with a slight upside bias) readings to follow in the months ahead as base effect adjustments also come into consideration. In any case, the ECB will continue to brush aside any ticks higher given the current economic predicament.
Further Development
Analyzing the current trading chart of Gold, I found that sellers took control from buyers as I expected and that Gold may trade lower towards $1,700.
My advice is to watch for selling opportunities with the downside targets at the price of $1,701 and $1,680.
Another confirmation for the downside movement is the breakout of the well developed upside channel...
Key Levels:
Resistance: $1,740
Support levels: $1,701 and $1,680.
