Gold prices were slightly lower on Friday after rising sharply on Thursday amid rising optimism in markets after EU leaders announced plans to ease the euro zone debt crisis and support Greece, however, traders were skeptic due to the lack of details on the plan, while a mixed income report from the United States weighed down slightly on confidence, as income rose below expectations, spending rose in line with projections, and the savings rate eased in September.
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 turn their focus next week on the FOMC’s rate decision, where some believe the Fed could embark on another round of quantitative easing, although recent fundamentals from the United States suggest the Fed will keep the monetary policy unchanged.
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