By FX Empire.com
Gold prices fell on Monday, as the U.S. dollar strengthened amid rising concerns over the outlook of the European debt crisis, where traders remained concerned despite that Italian Prime Minister resigned his office for former EU Commissioner Mario Monti to take the lead as the new Prime Minister. Italy sold 3 billion euros in 5-year bonds, however, yields hit a euro zone era record high amid fears Italy could follow the footsteps of Greece, as both countries continue to struggle to contain their debt problems.
Traders targeted lower yielding assets including the U.S. dollar, which put gold prices under negative pressure and forced gold prices to drop.
Traders will continue to monitor the developments fromEuroperegarding the debt crisis, especially amid the uncertainty that is surrounding the outlook of the EU debt crisis. Moreover, traders will be eyeing key data from the U.S. retail and manufacturing sectors, in addition to data on inflation. But overall, we preserve our bullish outlook for gold prices.
Originally posted here
