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Gold/EUR trims losses, runs into hourly 50-MA

FXStreet (Mumbai) - Gold prices in the EUR terms or Gold/EUR pair trimmed losses and ran into hourly 50-MA resistance located at EUR 1035.93/Oz levels.

Awaits ECB

The metal lacks a major catalyst today as the US and the Eurozone economic calendar is empty. The main event is the ECB rate decision due tomorrow. No one in the market expects the central bank to move rates or alter QE tomorrow.

However, the German bond yields did price-in the possibility of the ECB hinting at extension/expansion of more QE and/or rate cuts. As of now, the equity markets in Europe are trading positive and that is keeping EUR/USD under pressure and Gold/EUR on a positive note.

Gold/EUR Technical Levels

The immediate resistance is seen at 1042.61 (Oct 15 high), above which gains could be extended to 200-DMA at 1056.79. On the lower side, support is seen at 1034.71 (hourly 50-MA), under which the metal could drop to 1029.49 (hourly 200-MA).

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