By FX Empire.com
Gold prices were little changed on Wednesday, where on one hand rising optimism in Europe over the outlook of the European debt crisis on hopes EU leaders will announce effective measures at next week’s EU summit overshadowed Moody’s downgrade to Spain and pushed the U.S. dollar lower, which provided gold prices with some bullish momentum.
On the other hand, gains were limited after the consumer price index was released from the United States showing Core CPI eased in September, which put negative pressure on gold prices.
The outlook for gold remains generally to the upside, however, we still expect volatility to continue to dominate gold prices, and that could still weigh down on gold prices, but overall, our general outlook for gold prices remains to the upside. The focus in markets is likely to remain on Europe ahead of next week’s EU Summit.
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