By FX Empire.com
Gold prices fell on Thursday, as optimism returned to markets after Lucas Papademos was named to be interim prime minister ofGreece, the U.S jobless claims fell to its lowest since April and U.S trade deficit narrowed in September.
Nonetheless, traders avoided gold as a safe haven amid the optimism that is surrounding the outlook for the European debt crisis, where the appeal of gold as a safe haven seems to have subdued over the course of this week.
Traders will continue to monitor the developments from Europe regarding the debt crisis, especially amid the lack of major economic data from theUnited States, but overall, we expect gold prices to extend the rally over the coming period.
The outlook for gold remains generally to the upside, however, we still expect volatility to continue to dominate gold prices, and that could still weigh down on gold prices, but overall, our general outlook for gold prices remains to the upside.
Originally posted here
