By FX Empire.com
Gold prices fell on Wednesday due to the strength of the U.S. dollar, where fears from Europe continued to dominate global financial markets, where yields on Italian and Spanish bonds continued to rise, especially after a weak German Bund auction, which fueled fears among traders over the outlook of the European debt crisis, sending the U.S. dollar soaring to the highest level in seven weeks, which put gold prices under pressure.
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. Traders will be also watching growth figures from Germany and the U.K., but we should expect gold to trade within a limited range, since U.S. markets will be off celebrating the Thanks Giving holiday.
Accordingly, we should expect calm trading on Thursday unless we have new developments from Europe on the debt crisis, but if the U.S. dollar extends its gains, gold prices are likely to remain under pressure.
Originally posted here
