Gold Forecast Dec. 20, 2011, Fundamental Analysis

, as the US dollar strengthened throughout the day to accordingly push down gold prices amid speculation over economical instability in Asia following the death of North Korean leader Kim Jong-il.

As the year nears to end, lights are about to fade around the financial markets, where will accordingly see low volumes and limited trading as well before Christmas holiday. The sentiment will start to shape as investors stay cautious ahead of the New Year’s but will be mostly concerned about the latest development from the 17-bloc euro area.

On Tuesday, eyes will be focused on German Data, with the IFO index for business climate, current assessment and expectation, where projections are hovering around a drop in these indices and that should eventually affect trading.

Accordingly, we should expect more fluctuations in gold prices, but should the current pessimism persist, we should expect gold prices to stretch gains, so far, the level of uncertainty is very high and investors are better to be cautious.