By FX Empire.com
Gold prices erased earlier losses and settled on Tuesday, where gold prices fell earlier amid the dollar’s strength on fears from the European debt crisis, as yields on European governmental bonds rose due to rising fears that the EU debt crisis is worsening. Nonetheless, gold prices recovered earlier losses and gained back after data from the United States provided optimism over the outlook of the world’s largest economy.
Traders though disregarded easing inflation in the United States, where the producer price index showed price pressures eased in October, but rising retail sales in October, and an unexpected expansion in the empire manufacturing index, put negative pressure on the U.S. dollar, which provided gold prices with bullish momentum to erase earlier losses.
Traders will continue to monitor the developments from Europe regarding the debt crisis, where rising yields in Europe suggest investors are concerned amid the uncertainty that is surrounding the outlook of the EU debt crisis. Moreover, traders will be eyeing key data on inflation from the consumer price index, in addition to industrial production data. But overall, we preserve our bullish outlook for gold prices.
Originally posted here
