Gold prices fell last week, as the U.S. dollar strengthened on mounting fears the European debt crisis is worsening, which raised fears the debt crisis is spreading into major economies within the euro zone area.
Meanwhile, economic data from the United States basically showed better than expected progress, where the services sector activities continued to expand in November, while Chicago PMI rose more than forecasts in November, easing some concerns in markets over the outlook for growth in the world’s largest economy. Nonetheless, pessimism over Europe’s debt crisis remains the actual sentiment around global financial markets.
Important data will be released from Europe and the United States next week, where investors will look up to the final process of European nations, where we expect volatility to persist over the sessions this week, especially with eyes wide-opened on the European bond auctions, while the Federal Open Market Committee (FOMC) rate decision will highlight this week, where the Federal Reserve is expected to leave the benchmark interest unchanged since improvement is cited in the U.S economy.
We expect gold prices will continue to rise over the coming period, however, but we also expect volatility dominate gold prices, despite of the recent economic improvement, yet risks are still surrounding the progress of several economies, especially as the outlook for global economies remains full of uncertainty, and that should continue to provide gold prices with the safe haven appeal. We also expect Europe to take over the steer next week, where investors will look forward to the final process of European nations and the European bond auctions.
Originally posted here
