Gold prices fell on Wednesday, as fears continued to dominate markets over the outlook of the European debt crisis, despite the ECB effort to ease tensions in markets by purchasing Italian, Spanish, and Portuguese bonds, yet rising yields in Europe forced investors to shun risky assets and targeted lower yielding assets, which provided the U.S. dollar with some bullish momentum and weighed down on gold prices as a result.
Moreover, data on inflation from the United States signaled easing price pressure, where the CPI was released for October, showing that CPI fell in October by 0.1%, while core CPI rose in line with projections at 0.1%. Moreover, industrial production rose in the United States by 0.7% in October, better than median estimates.
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 data from the U.S. housing market represented by the housing starts and building permits, in addition to the weekly jobless claims, and the Philadelphia Fed index.
Originally posted here
