Gold prices inclined as market enjoyed some gains on Thursday after the bond auctions went smoothly and successfully in both Spain and Italy while the ECB president Draghi said tentative signs of stability are seen.
On Thursday Spain sold double its target raising 10 billion euros as costs fell. While Italy also saw borrowing costs fall sharply as it raised its targeted 12 billion euros.
Now, eyes will be spotted on this year, and the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.
Accordingly, we should expect more fluctuations for gold, but should the current pessimism persist, we should expect gold prices to extend the rallies, however, the level of uncertainty is very high, and investors are ought to remain cautious.
Originally posted here
