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Gold back above EUR 1100/Oz

FXStreet (Mumbai) - Gold in EUR terms advanced today to trade above EUR 1100 levels as the markets ignored upbeat PMI data in the Eurozone, while favoring the ongoing political developments in Greece.

Safe haven appeal

The yellow metal advanced 1.12% to EUR 1110.20/Oz levels amid ongoing political developments in Greece. The metal rose after the International Monetary Fund (IMF) said that there has been no discussions with Greece over changing the debt framework. Following Greece’s call to ditch the Troika in favor of OECD oversight, the IMF say they’ve had no talks on the matter.

Meanwhile, the markets ignored the data which showed expansion in the service sector activity in the Eurozone.

Gold (EUR) Technical Levels

The immediate resistance is seen at 1127.05, above which gains could be extended to 1140.38 levels. Meanwhile, support is seen at 110.15 and 1091.81 levels.

China to refrain from joining the global FX war – Danske

Flemming Nielsen, Senior Analyst at Danske Bank, expects China to avoid entering the global currency war, with the largely unchanged USD/CNY trading band suggesting that PBoC is not interested to target a lower CNY to support growth.
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Non-manufacturing ISM gains again in January

The Institute for Supply Management index of economic activity in the non-manufacturing sector grew in January for the 60th consecutive month registering 56.7 percent in January, 0.2 percentage point higher than the December reading of 56.5 percent.
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