By FX Empire.com
Gold prices rose slightly on Thursday, as optimism was spread through markets after EU leaders announced plans to ease the euro zone debt crisis, which boosted demand for higher yielding assets including major currencies, equities, and commodities, while the U.S. dollar fell sharply against major currencies, which allowed gold prices to gain a slight bullish momentum.
Traders were also encouraged to target higher yielding assets after the GDP report from theUnited Statesshowed the world’s largest economy expanded by 2.5% in the third quarter, in line with median estimates.
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. Traders will be eyeing the U.S. income report on Friday, which is expected to show that personal income and spending continued to improve at a moderate pace, while core PCE, the Fed’s favorite indicator for inflation, is expected to show that inflation remained subdued in September.
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