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Gold rises after ECB expands the asset purchase program

FXStreet (Mumbai) - Gold prices recovered entire losses to trade in green after the European Central Bank (ECB) announced an expansion of the asset purchase program as expected.

The yellow metal now trades 0.34% higher at USD 1298.80/Oz levels. The prices recovered as the ECB shall expand its balance sheet via expansion of asset purchase program, which shall include public and private securities of Eurozone nations. Moreover, the 20% of the risk from the additional purchases shall be held by the ECB while the remaining would be held by national central banks. The expansion of the balance sheet is supportive for Gold prices.

Gold Technical Levels

The immediate resistance is seen at 1300, above which gains could be extended to 1305.1 levels. Meanwhile, support is seen at 1192 and 1283.4 levels.

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