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11 Nov 2014
Gold gains in EUR terms
FXStreet (Mumbai) - Gold prices for the 17-nation currency block advanced today after the European Central Bank (ECB) data showed that the bond purchases slowed down during the second week of the program as policy makers prepare to expand their asset-buying program to include other securities.
Gold is trading 0.20% higher at EUR 928.61, while the EUR/USD pair is trading 0.08% lower at 1.2408 levels. The ECB data released yesterday showed the outstanding amount of covered bonds settled under the Frankfurt-based institution’s program rose by EUR 2.629 billion last week to EUR 7.408 billion.
Moreover, markets are concerned that at the current pace of bond purchases, the bank will find it more difficult to boost its balance sheet size to early-2012 levels. Hence, the plan, which is set to broaden to asset-backed securities from this month, is part of a stimulus package that also includes targeted bank loans and record-low interest rates.
Thus, gold prices gained marginally in EUR terms, since the value of Gold usually moves higher with an increase in the balance sheet size of the central banks.
Gold (EUR) Technical Levels
Gold has an immediate resistance at 930, above which the prices may rise to 936.53 levels. On the flip side, support is seen at 924 and 920 levels.
Gold is trading 0.20% higher at EUR 928.61, while the EUR/USD pair is trading 0.08% lower at 1.2408 levels. The ECB data released yesterday showed the outstanding amount of covered bonds settled under the Frankfurt-based institution’s program rose by EUR 2.629 billion last week to EUR 7.408 billion.
Moreover, markets are concerned that at the current pace of bond purchases, the bank will find it more difficult to boost its balance sheet size to early-2012 levels. Hence, the plan, which is set to broaden to asset-backed securities from this month, is part of a stimulus package that also includes targeted bank loans and record-low interest rates.
Thus, gold prices gained marginally in EUR terms, since the value of Gold usually moves higher with an increase in the balance sheet size of the central banks.
Gold (EUR) Technical Levels
Gold has an immediate resistance at 930, above which the prices may rise to 936.53 levels. On the flip side, support is seen at 924 and 920 levels.