Gold trades flat in EUR terms

FXStreet (Mumbai) - Gold prices are trading flat in the EUR terms amid an upbeat private sector activity report in the Eurozone and caution ahead of the Eurogroup meeting.

Gold: trades below 38.2% Fib level

The metal continues to trade below the 38.2% Fib retracement level of the uptrend from 911.65 to 1168.55 located at EUR 1070.22/Oz. The rise in the German and the Eurozone private sector activity shown by the Markit data released today did little to weaken the yellow metal. Moreover, caution ahead of the Eurogroup meeting capped losses in the metal.

The metal could extend the slide later today if the Eurogroup is able to decide on a quick fix to the Greece’s debt problem. However, Gold could rise well above the 38.25 Fib level if the Greece’s application for loan extension is rejected at the Eurogroup meeting.

Gold (EUR) Technical Levels

The metal currently trades at EUR 1062.2/Oz; up 0.07% for the day. The immediate resistance is seen at 1070.22, above which gains could be extended to 1089.11 (Feb. 17 high). On the flip side, a break below 1053.90 (Feb. 18 low) could push the pair down to 1039.87 (50% Fib retracement).

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