FX.co ★ Analysis of Gold for March 01,.2021 - Second target at the price of $1.721 has been reached and potential for next target test at $1.680

Latest data released by Destatis - 1 March 2021

This just adds to confirmation that the German national reading later should see CPI tick slightly higher than the January reading of +1.0% y/y. The estimate is for a jump to +1.2% y/y to +1.3% y/y - which will be the highest since March last year.

That said, it all needs to be put into context, whereby the VAT changes and introduction of CO2 tax at the start of the year and added base effects (higher input costs from supply chain disruptions) are distorting the actual inflation picture.

Further Development

Analyzing the current trading chart of Gold, I found that sellers are in total control and that our second target at the price of $1,722.

Key Levels:

Resistance: $1,765

Support levels: $1,721 and $1,680