Gold prices fell sharply in EUR terms on an upbeat German employment data and sharp fall in German inflation.
Drops below 5-DMA and 10-DMA
The XAU/EUR pair or Gold in EUR terms trades below the 5-DMA and the 10-DMA located at EUR 1140.15 and EUR 113.45 levels. The metal did test the 5-DMA earlier today, although prices weakened on an upbeat German data.
Meanwhile, the metal also lost some of its appeal as an inflation hedge after the German preliminary CPI reading for January showed prices declined 0.3% year-on-year, the lowest since 2009. Moreover, the markets have already priced-in ECB’s QE, hence the metal declined due to drop in inflation.
Gold (EUR) Technical Levels
Gold in EUR terms currently trades 1.53% lower at EUR 1120.25/Oz levels. The immediate support is located at 1113.27 (Jan. 16th high), under which the metal could test 1100.15 (Jan. 22nd low) levels. On the flip side, resistance is seen at 1129.60 and 1142.00 levels.
Drops below 5-DMA and 10-DMA
The XAU/EUR pair or Gold in EUR terms trades below the 5-DMA and the 10-DMA located at EUR 1140.15 and EUR 113.45 levels. The metal did test the 5-DMA earlier today, although prices weakened on an upbeat German data.
Meanwhile, the metal also lost some of its appeal as an inflation hedge after the German preliminary CPI reading for January showed prices declined 0.3% year-on-year, the lowest since 2009. Moreover, the markets have already priced-in ECB’s QE, hence the metal declined due to drop in inflation.
Gold (EUR) Technical Levels
Gold in EUR terms currently trades 1.53% lower at EUR 1120.25/Oz levels. The immediate support is located at 1113.27 (Jan. 16th high), under which the metal could test 1100.15 (Jan. 22nd low) levels. On the flip side, resistance is seen at 1129.60 and 1142.00 levels.
