DAX, Gold Forecast: Two trades to watch

The article gives a short-term outlook for Germany 40 and gold. Germany 40 is under pressure as European equities open lower on tech weakness and renewed U.S.-Iran tensions, which are lifting oil prices and raising inflation/rates concerns. Despite the pullback, the DAX trend remains bullish while it trades above key moving averages and trendline support; upside levels watched are 25,500 and the record high at 25,920, while a break below 24,800 could expose 24,340 and then 24,000. Gold is weaker for a second straight week as higher Treasury yields and a firmer dollar hurt non-yielding assets, and rising oil prices from Middle East risk are reinforcing hawkish Fed expectations. Technically, gold has broken below a symmetrical triangle and the 200-day SMA, leaving the bias bearish unless it recovers 4,200. Downside targets are 3,940, then 3,800 and 3,500.