By FX Empire.com

Gold prices fell on Thursday amid the huge uncertainty that continues to surround the outlook of the European debt crisis, where reports signaled that France and Germany are split over the role of the European Central Bank in leveraging the European Financial Stability Facility fund, while economic reports from the U.S. showed mixed results, as jobless claims rose above expectations, while the Philadelphia Fed index expanded in October opposite to expectations.

Traders opted to sell gold in line with other commodities on Thursday, where traders are anxious ahead of the EU summit next week, which is expected to reveal new measures to ease the euro zone debt crisis, however, mixed reports and signals from EU officials has raised volatility levels in markets, which pushed investors away from gold.

The outlook for gold remains generally to the upside, however, we still expect volatility to continue to dominate gold prices over the short term, 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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