Gold Forecast Dec. 28, 2011, Fundamental Analysis

Gold prices declined after dollar dropped and a governmental report showed an improvement in consumer confidence in December, while trading volumes are becoming thinner over the week before the New Year’s holiday, noting markets are closed today including UK and Australia, yet data out today showed that the US economy improved recently.

Keeping in mind, sentiments will start to shape as investors remain cautious ahead of the New Year’s holiday 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 if current pessimism persist, we expect gold prices to extend the rallies, however, the level of uncertainty is very high, so investors are ought to remain cautious.