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Gold/EUR takes a breather after a four day losing streak

FXStreet (Mumbai) - Gold prices in the EUR terms are trading in the sideways manner after having suffered losses in the previous four trading sessions.

Gold supported by heightened expectations of ECB easing

The metal is being supported by heightened expectations that the European Central Bank (ECB) would have to do more easing in order to combat the deflationary forces. The Eurostat data released on Wednesday showed the Eurozone fell back into deflation.

Meanwhile, the S&P rating agency was on the wires stating that the ECB could extend its QE program beyond September 2016. Consequently, the EUR/USD pair fell to its 100-DMA, providing support to the metal. The focus is now on the Eurozone PMI reports.

Gold/EUR Technical Levels

The metal currently trades around EUR 998.47/Oz. The immediate support is seen at 994.76 (Wednesday’s low) and 992.15 (Aug 5 low). On the other hand, resistance is seen at 1003.41 (Wednesday’s high) and 1008.08 (Tuesday’s high).

Market focus on Eurozone PMI, UK PMI awaited as well - TDS

Prashant Newnaha, Rates Strategist at TD Securities, suggests that the European investors are focusing on the release of Eurozone and UK PMI data in today’s session.
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