Gold Forecast Dec. 30, 2011, Fundamental Analysis
Gold prices declined on Thursday as US dollar strengthened back after the US data that came mixed, where jobless claims rose last week above expectations, while Chicago PMI index came better than forecasted in December, in addition, sales of pending homes in the U.S climbed 7.3 percent above expectations of 1.5 percent.
While The euro fell to a 15-month low against the US dollar as Italian bond yields rose after the nation sold less than its maximum target at an auction, highlighting funding problems amid the region’s sovereign-debt crisis.
Still, light is spotted on this period of time, as this year is coming to an end as this day is the last trading day before the New Year infamous for low volume and tight ranged trading. The sentiment will start to shape as investors stay aside ahead of the start of the coming year and closely eye developments from the 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, and investors are ought to remain cautious.