By FX Empire.com
Gold prices rose on Wednesday for a fourth consecutive day, as traders opted to target gold ahead of the EU summit, where traders were cautious ahead of the EU summit, which is expected to announce plans to solve Greece’s debt problem, in addition to recapitalize European banks, and increased the European Financial Stability Facility fund.
Gold’s appeal as a safe haven has diminished over the past period, as high volatility levels reduced the appeal of gold as a safe haven; however, as uncertainty continues to mount regarding the European debt crisis, in addition to rising volatility levels in markets, traders opted to target gold on Wednesday.
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 will remain onEurope, as traders wait for the final resolutions that will be provided by EU leaders on Wednesday.
Read Forex Updates here.
