Gold/EUR extends gains after Eurozone CPI data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The XAU/EUR pair or Gold in EUR terms extended gains after weaker Eurozone CPI figure strengthened case for a more aggressive ECB action next week.

    Trades at 11-month high

    At EUR 1133/Oz levels, prices are at the 11-month high. The metal was buoyed by the risk-off moves in Asian equities, which were carried forward to European shores. The bullish momentum further gained pace after the Eurozone CPI printed way below estimates and strengthened the possibility of a more aggressive easing by the ECB next week.

    The bid tone around metal may remain intact as markets speculate about the magnitude of ECB easing next week.

    Gold/EUR Technical Levels

    The immediate resistance is seen at 1135.67 (Feb 24 high), above which prices could target 1142.89 (Apr 13 high). On the other hand, a breakdown of 1116.61 (daily low) would open doors for a slide to 1100 levels.
    For more information, read our latest forex news.

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