Gold declines 1% in EURO terms

Frankfurt (Feb 17)  Gold prices in the EUR terms fell 1%, outdoing the 0.4% decline in Gold in USD terms, on an upbeat Zew economic sentiment index released today.

Gold weakened by an upbeat economic data and lack of safe haven demand

Gold prices were trading weak despite the extended standoff between Greece and the Eurogroup after the talks failed yesterday. The metal has consistently failed to rise on safe haven appeal since the beginning of the current month.

The metal extended the slide after the Eurozone Zew economic sentiment index saw a decent jump to 52.7 in February, compared to 45.2 in January. The German economic sentiment also ticked up to 53.00 in February from January’s 48.4, although it did miss the estimate of 55.00.

Gold (EUR) Technical Levels

The metal or XAU/EUR currently trades 1% lower at EUR 1073.30/Oz levels. The immediate support is seen at the 50-DMA located at 1062.01, under which losses could be extended to 1050.00 levels. On the flip side, a rise above the 5-DMA at 1078.53 could see the pair re-test 1089.12 levels.

Source: FXstreet