Gold price in EUR terms dropped to two-week lows

Frankfurt (Jun 3)  Gold prices in the EUR terms fell to two-week low of EUR 1065.63/Oz levels As the German bund yields and the shared currency appreciated on strong inflation figures released on Tuesday.

Eurozone core inflation rate, excluding energy and food, was 0.9% in May, constituting a much higher year-on-year. Consequently, the EU/USD rose to a high of 1.1190, thereby pushing the XAU/EUR or Gold in EUR terms lower to 1065.30/Oz.

Meanwhile, Gold in the dollar terms weakened moderately to USD 1188.90/Oz levels. Gold ETFs recorded outflows of 5.4 tons yesterday, their highest daily outflow in two weeks.

XAU/EUR or Gold in EUR Technical Levels

The metal faces immediate resistance at 1077.73 (May 14 high), above which gains could be extended to 1100. On the flip side, a break below 1060 could push the prices lower to 1050.45.

Source: FXstreet