13 Jan 2015
Gold outperforms in EUR terms
FXStreet (Mumbai) - Gold prices advanced today in EUR terms, outperforming the XAU/USD pair on increasing expectations of sovereign QE in the Eurozone.
Gold in EUR terms or XAU/EUR traded 0.69% higher at EUR 1049.66/Oz levels at the time of writing. The sovereign QE is almost a done deal now, especially after the European Central Bank member Benoit Couere said the decision to implement QE would not be influenced by Greece’s national election of Jan. 25. He further added that the talks regarding QE reached an advanced stage as the central bank cannot ignore the threat to price stability mandate. Consequently, the EUR/USD weakened to hit a low of 1.1754 today. Some amount of recovery in EUR/USD did cap gains in XAU/EUR. However, increased expectations of sovereign QE means the Gold in EUR terms shall continue to outperform Gold in USD terms.
Gold (EUR) Technical Levels
The immediate resistance is seen at 1052.35 on the hourly charts, above which gains could be extended to 1054.71 levels. Meanwhile, support is seen at 1046 and 1041.80 levels.
Gold in EUR terms or XAU/EUR traded 0.69% higher at EUR 1049.66/Oz levels at the time of writing. The sovereign QE is almost a done deal now, especially after the European Central Bank member Benoit Couere said the decision to implement QE would not be influenced by Greece’s national election of Jan. 25. He further added that the talks regarding QE reached an advanced stage as the central bank cannot ignore the threat to price stability mandate. Consequently, the EUR/USD weakened to hit a low of 1.1754 today. Some amount of recovery in EUR/USD did cap gains in XAU/EUR. However, increased expectations of sovereign QE means the Gold in EUR terms shall continue to outperform Gold in USD terms.
Gold (EUR) Technical Levels
The immediate resistance is seen at 1052.35 on the hourly charts, above which gains could be extended to 1054.71 levels. Meanwhile, support is seen at 1046 and 1041.80 levels.