11 Dec 2014
Gold gains in EUR terms ahead of German inflation data and ECB tLTRO
FXStreet (Mumbai) - Gold prices in the 17-nation currency bloc edged higher today ahead of the German inflation data, which is likely to show price pressures remain unchanged in November.
Gold in EUR terms on XAU/EUR traded 0.11% higher at 986.09/Oz levels at the time of writing, compared to the previous session’s close of EUR 985.38/Oz. The metal remained well supported due to the decline in the EUR/USD pair to 1.2450 levels. The metal may rally further if the single currency falls on a weak German CPI number. Markets expect the CPI to come-in at 0.6% year-on-year in October.
Meanwhile, the European Central Bank (ECB)is due to announce the allotment of its second tLTRO operation today. A weak take-up of the tLTRO may prove to be a EUR negative as it increases the likelihood of a more expansive measure to expand the balance sheet in the future. In such a case, Gold is may extend gains in the EUR terms.
Gold (EUR) Technical Levels
Gold has an immediate support located at 985.15, under which losses could be extended to 978.97 levels. Meanwhile, resistance is seen at 992 and 999 levels.
Gold in EUR terms on XAU/EUR traded 0.11% higher at 986.09/Oz levels at the time of writing, compared to the previous session’s close of EUR 985.38/Oz. The metal remained well supported due to the decline in the EUR/USD pair to 1.2450 levels. The metal may rally further if the single currency falls on a weak German CPI number. Markets expect the CPI to come-in at 0.6% year-on-year in October.
Meanwhile, the European Central Bank (ECB)is due to announce the allotment of its second tLTRO operation today. A weak take-up of the tLTRO may prove to be a EUR negative as it increases the likelihood of a more expansive measure to expand the balance sheet in the future. In such a case, Gold is may extend gains in the EUR terms.
Gold (EUR) Technical Levels
Gold has an immediate support located at 985.15, under which losses could be extended to 978.97 levels. Meanwhile, resistance is seen at 992 and 999 levels.