Gold eases to $1,130.80 support as Dollar strengthens

By IBTimes Staff Reporter | January 15 2010 7:14 AM

FXstreet.com (Barcelona) - Gold prices decline from resistance area at $1,145/46 tested on Asian trade, has extended lower on European trade, and XAU/USD has reached yesterday's low at $1,130.80, as the Dollar strengthened against Euro and Pound.

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On a wider perspective, Gold prices have been trading into a consolidation channel, from $1,130/31 to $1,145/46 after half way through the current week's range, from $1,118 to $1,162.

The Dollar has strengthened during Euro and Pound during European session, favoured by risk aversion after weak U.S. retail sales and, in the case of the Euro Trichr't assessment about an uncertain economic recovery in the Eurozone.

EUR/USD decline from Thursday's high at 1.4555 has extended during European session to one-week low at 1.4365. The GBP/USD has pulled back from 3-week high at 1.6355 to session low at 1.6265.

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