gold prices erased earlier losses on Friday after a wave of optimism started to spread through European and U.S. markets amid reports EU officials are discussing more measures to ease the euro zone debt crisis, which overshadowed earlier pessimism that dominated markets after yields on Italian bonds soared after a bond auction, reflecting the ongoing concerns that the European debt crisis is worsening.
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.
Accordingly, we should expect more fluctuations in prices, but if the U.S. dollar extends its gains, gold prices are likely to remain under pressure.
Originally posted here
