By FX Empire.com
Gold prices rose on Friday, as optimism reignited following the latest political developments in the euro zone, especially after tension eased in both Italy and Greece, in addition U.S economy broke the silence today with the latest estimate of consumer confidence for November, fueling hopes regarding the threatened economic recovery.
If truth be told, optimism was mostly seen among the markets on Friday, as investors grew more confidenced that Italy will able to carry out a credible fiscal consolidation. While in Greece, the former ECB president Lucas Papademos sworn in as the new Greek Prime Minister on Friday, paving a way for the unity government to take place in Greece. Meanwhile, investors will be focused on Greece as the Greek government must endorse the 130 billion euro bailout to avert default.
Traders will continue to monitor the developments from Europe regarding the debt crisis, especially amid the lack of major economic data from theUnited States, but overall, we expect gold prices to extend the rally over the coming period.
The outlook for gold remains generally to the upside, however, we still expect volatility to continue to dominate gold prices, thus still weigh down on gold prices, however, our general outlook for gold prices remains to the upside.
Originally posted here
