Gold eases in EUR terms

Frankfurt (Jan 19)  Gold prices eased in EUR terms, largely on account of technical factors as the expectation of a sovereign QE program announcement later this week are well entrenched in the markets.

The XAU/EUR pair or Gold in EUR terms currently trades 0.61% lower at EUR 1099.60/Oz levels. The metal has been outperforming in the EUR terms as markets priced-in the implementation of the sovereign QE program in the Eurozone. Moreover, the yellow metal is known to have a direct relationship with the size of central bank balance sheet size. Consequently, the metal gained has been on a winning streak on account of the ECB’s intent to increase the balance sheet size via LTRO, ABS and QE programs.

Gold prices eased slightly as markets took a breather after a more than EUR 50 gain seen in the last two sessions. The EUR/USD pair has also seen a technical recovery of 0.35% as it trades above 1.16 levels.

Gold in EUR terms

The immediate resistance is seen at 1108.40 and 1113.27 levels. Meanwhile, support is seen at 1094.18, under which losses could be extended to 1078.10 levels.

Source: FXstreet