Gold Forecast Dec. 13, 2011, Fundamental Analysis

, where the U.S. dollar strengthened, as pessimism started to spread through markets after Friday’s EU summit. While Moody’s also added to the jitters by saying the EU will be under review after the summit failed to produce decisive measures to end the crisis. Investors are starting to doubt the ability of EU leaders to come up with a resolution to the debt crisis. Accordingly, investors targeted lower yielding assets including the U.S. dollar, which weighed down on gold prices.

Traders will continue to monitor the developments from the 17-bloc euro nation and the European leader’ latest moves to contain the debt crisis, where we expect volatility to persist this week.

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.