By FX Empire.com
Gold prices extended the drop on Thursday, where jitters continued to dominate markets on fears from the European debt crisis, as governmental bond yields continued to rise on concerns the euro zone debt crisis is worsening. Accordingly, traders liquidated their profitable gold positions to cover losses in other assets, which weighed down on gold prices.
Bond sales in France and Spain disappointed investors on Thursday, which pushed yields higher, as investors were concerned the EU debt crisis is spreading into major economies within the euro zone area, as Italy and Spain continue to struggle to contain the worsening fiscal situation inEurope.
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. We still expect gold prices to continue to fluctuate heavily over the coming period, but overall, we remain bullish on gold prices.
Originally posted here
