Eurozone GDP hardly moves Gold prices

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - Gold prices hardly reacted to an upbeat Eurozone Q4 preliminary GDP figure released few minutes back, as a weak US dollar and strong European equities keep the yellow metal stuck in a tight range.

Struggles around 5-DMA

The yellow metal continues to hover just below the 5-DMA located at USD 1228.46/Oz levels, after having failed to extend gains above USD 1230/Oz levels earlier today. Moreover, the strength in the major European equity markets, coupled with a better-than-expected German and Eurozone preliminary Q4 GDP data have capped gains in the metal.

On the other hand, a weak USD continues to support Gold prices. However, the 10-year Treasury yields in the US have recovered losses to trade at 2%. Thus, Gold could erase gains if the US dollar recovers ground, tracking the rise in the Treasury yields.

Gold Technical Levels

The immediate resistance is seen at 1234.53 (50-DMA), above which gains could be extended to the 10-DMA located at 1241.51 levels. On the flip side, a break below the daily low of 1222.8 could push the pair down to the 100-DMA located at 1214.54 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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