Gold Forecast Dec. 23, 2011, Fundamental Analysis

, after stocks rose and demand ebbed for safe havens amid signs the economy is strengthening, as the US jobless claims dropped to the lowest level since April 2008 and US confidence came better than expected, together overshadowed slower than forecasted US GDP.

As the year nears to end, lights are about to fade upon the financial markets and we 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 for gold, but should the current pessimism persist, we should expect gold prices to extend the rallies, however, the level of uncertainty is very high, so investors are ought to remain cautious.