17 Feb 2015
Gold struggles even though Eurogroup talks fail
FXStreet (Mumbai) - Gold prices struggle to extend gains even though the Eurogroup talks scheduled yesterday failed to reach a concrete deal; increasing the risk of a Greece default.
Safe Haven assets struggle
Despite the extended standoff between Greece and its international creditors, Gold and other traditional safe haven assets – Yen and US Treasuries – fail to strengthen. Gold prices have been restricted in a narrow range of USD 1220-1235 since last coupled of sessions. Moreover, the extended standoff between Eurogroup and Greece risks overriding the deadlines - the ECB deciding when to cut off Greek banks' ELA access on Wednesday and Eurogroup President Dijsselbloem is saying this week is the only window for negotiation.
Moreover, the EUR has remained unscathed so far, hence the safe haven assets could have failed to strengthen. Markets also focus on Fed minutes due for release tomorrow, which could provide cues regarding the timing of interest rate hike in the US.
Gold Technical Levels
The immediate resistance is seen at 50-DMA located at 1236.59, above which prices could rise to the 200-DMA located at 1242.55 levels. On the flip side, support is seen at 1226 and 1220 levels.
Safe Haven assets struggle
Despite the extended standoff between Greece and its international creditors, Gold and other traditional safe haven assets – Yen and US Treasuries – fail to strengthen. Gold prices have been restricted in a narrow range of USD 1220-1235 since last coupled of sessions. Moreover, the extended standoff between Eurogroup and Greece risks overriding the deadlines - the ECB deciding when to cut off Greek banks' ELA access on Wednesday and Eurogroup President Dijsselbloem is saying this week is the only window for negotiation.
Moreover, the EUR has remained unscathed so far, hence the safe haven assets could have failed to strengthen. Markets also focus on Fed minutes due for release tomorrow, which could provide cues regarding the timing of interest rate hike in the US.
Gold Technical Levels
The immediate resistance is seen at 50-DMA located at 1236.59, above which prices could rise to the 200-DMA located at 1242.55 levels. On the flip side, support is seen at 1226 and 1220 levels.