By FX Empire.com
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, as fears and rising debt concerns dominated investors after the G20 summit failed to quell jitters and provide clear decisions to aid the euro-area and prevent the crisis from spreading into other larger economies within the region.
Meanwhile, economic data from the United States showed strong results, however, markets were focused on the Trade Balance for September, where the trade deficit narrowed from $44.9 to $43.1 billion.
Traders are likely to use next week to adjust their positions as they will reflect on the recent data from Europe and the United States, where the retail sales report will be released from both Europe and the United States.
We suggest that gold prices will rise over the coming period, however, we also expect volatility to dominate gold prices, despite the recent improvement in overall conditions, yet risks are still threatening the economic progress, 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 be the main highlight over the next week, as developments in Greece and Italy are likely to be to feature financial markets throughout the upcoming week.
Originally posted here
