21 Jan 2015
Gold falls into the red
FXStreet (Mumbai) - Gold prices declined on the leaked news that the European Central Bank (ECB) would begin bond purchases in March, rather than with immediate effect as widely expected by markets.
The yellow metal now trades 0.56% lower at USD 1286.90/Oz levels, down from the day’s high of USD 1305.10/Oz levels. The metal came under pressure on the news that the ECB would begin purchasing monthly EUR 50 billion bonds from March. Moreover, the markets had priced-in the balance sheet expansion with immediate effect from January, thereby sending the yellow metal higher.
However, the metal is likely to find some support on the Bank of Canada’s surprise decision to cut the interest rates to 0.75%.
Gold Technical Levels
The immediate support is now seen at 1282.34 (5-DMA), below which losses could be extended to 1272.3 levels. Meanwhile, resistance is seen at 1297.1 and 1305.10 levels.
The yellow metal now trades 0.56% lower at USD 1286.90/Oz levels, down from the day’s high of USD 1305.10/Oz levels. The metal came under pressure on the news that the ECB would begin purchasing monthly EUR 50 billion bonds from March. Moreover, the markets had priced-in the balance sheet expansion with immediate effect from January, thereby sending the yellow metal higher.
However, the metal is likely to find some support on the Bank of Canada’s surprise decision to cut the interest rates to 0.75%.
Gold Technical Levels
The immediate support is now seen at 1282.34 (5-DMA), below which losses could be extended to 1272.3 levels. Meanwhile, resistance is seen at 1297.1 and 1305.10 levels.