Gold prices extended the gains last week in volatile trading, as gold seems to have regained its safe haven appeal among traders amid the high level of uncertainty that is surrounding the outlook of the European debt crisis on renewed fears that Greece could be facing a disorderly default.
Meanwhile, economic data from theUnited Statesshowed mixed results, however, markets were focused on the Jobs report for October, which signaled that job growth is still weak in theUnited States, although unemployment fell unexpectedly to 9.0%, the lowest level since April.
Traders are likely to use next week to adjust their positions as they will reflect on the recent data from Europe and theUnited States, where the retail sales report will be released from both Europe and theUnited States.
We continue to expect that gold prices will rise over the coming period, however, we also expect volatility to continue to dominate gold prices, as despite the recent improvement in overall conditions, yet risks are still threatening the progress of improvement, especially as the outlook for global economies remains full of uncertainty, and that should continue to provide gold prices with the safe haven appeal. We also expect Europe to continue to dominate the headlines next week, where developments in Greece are likely to be the focal point of attention over the coming period.
