Gold uninspired in EUR terms after Eurozone CPI data

January 7, 2015

Frankfurt (Jan 7)  Gold prices in EUR terms remain largely unchanged despite the 17-nation currency bloc falling into deflation for the first time since 2009.

Gold in EUR terms or XAU/EUR pair traded 0.09% lower at EUR 102.30/Oz levels at the time of writing, compared to the previous session’s close of EUR 102.47/Oz levels. The yellow metal did not respond to the 0.2% year-on-year drop in the Eurozone inflation in December. The drop in the headline CPI figure is accompanied by a 0.8% year-on-year rise in the Core inflation. Moreover, the Gold in EUR terms is stuck between contradictory data showing rising core inflation and a broad based deflation. Accordingly, the EUR/USD pair too, has been unable to do much post the release of the data, as it trades around 1.1862 levels.

Gold (EUR) Technical Levels

The immediate support is seen at 1022.75 (5-DMA), under which prices may fall to 1013.04 (50-DMA) levels. Meanwhile, immediate resistance is seen at 1024.46 and 1026.63 levels

Source: FXstreet

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