Gold Weekly Forecast December 26-30, 2011, Fundamental Analysis

Gold prices gained last week, as we started from last week to see the thin holiday volume with the choppy trading evident, where the eyes were on the ECB three year loans which flooded banks with 489 billion euros and the market still has a cautious reaction to it.

This week we are surly in the holiday mode and with thin volumes of trading any move might be violent and especially with the lack of major data.

The week is low of major fundamentals this week which leaves the focus again on the outlook for growth and the debt crisis. This week we are surly in the holiday mode and with thin volumes of trading any move might be violent and especially with the lack of major data.

We continue to expect that gold prices will rise over the coming period, however, we also expect volatility to continue to dominate gold prices, and that could push gold prices lower as well over intraday and short term basis.