16 Jan 2015
Gold edges lower ahead of EU CPI data
FXStreet (Mumbai) - Gold prices fell below USD 1260.00/Oz levels as markets await the EU CPI data which is likely to show the cost of living dropped further in December.
The yellow metal now trades 0.42% lower for the day at USD 1259/Oz levels, after having recovered from a low of USD 1255 hit at the onset of the European session. The investors await the final December CPI reading in EUrozone, which may alter the market expectations regarding the sovereign QE in the Eurozone. Moreover, the repeated talk of QE by ECB policy makers along with the SNB’s currency shock ahead of next week’s ECB meet has already increased calls for a bigger-than-expected QE program in the Eurozone. A weaker-than-expected CPI (-0.2% year-on-year) shall only add fuel to the fire, thereby strengthening Gold in USD as well EUR terms.
Gold Technical Levels
The immediate resistance is seen at 1266.9, above which gains could be extended to 1272.5. Meanwhile, support is seen at 1250.00 and 1244.57 levels.
The yellow metal now trades 0.42% lower for the day at USD 1259/Oz levels, after having recovered from a low of USD 1255 hit at the onset of the European session. The investors await the final December CPI reading in EUrozone, which may alter the market expectations regarding the sovereign QE in the Eurozone. Moreover, the repeated talk of QE by ECB policy makers along with the SNB’s currency shock ahead of next week’s ECB meet has already increased calls for a bigger-than-expected QE program in the Eurozone. A weaker-than-expected CPI (-0.2% year-on-year) shall only add fuel to the fire, thereby strengthening Gold in USD as well EUR terms.
Gold Technical Levels
The immediate resistance is seen at 1266.9, above which gains could be extended to 1272.5. Meanwhile, support is seen at 1250.00 and 1244.57 levels.