Gold prices declined on Wednesday, after the US dollar strengthened back though data that was out from US housing sector showed an unexpected surge in
Gold Forecast Dec. 22, 2011, Fundamental AnalysisGold prices declined on Wednesday, after the US dollar strengthened back though data that was out from US housing sector showed an unexpected surge in existing home sales, anyhow, pessimism reignited in markets after the European Central Bank offered more than expected loans for the euro-area banks, mirroring the worsening impact of the debt crisis on European lenders.
As the year nears to end, lights are about to fade upon 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 traders will be mostly concerned about the latest development from the 17-bloc euro area.
Accordingly, we should expect more fluctuations in gold prices, but if current pessimism persists, we suggest that gold prices will stretch its gain, however, the level of uncertainty is very elevated, so traders are ought to remain cautious.
