Gold prices rose on Friday, as despite a European agreement to help Greece with its swelling debt problem, yet investors were still concerned that the European debt crisis will continue to spread across the region, as traders fear more prominent nations in the Euro Zone area will face similar difficulties including Italy and Spain, the Euro Zone’s third and fourth largest economies respectively.
Earlier on Friday optimism was the dominant theme among traders, however, doubts started to resurface again over the outlook of the European debt crisis, while news that U.S. lawmakers are close to agreeing a deal to raise the debt ceiling did little to calm traders, as they continued to target lower yielding and safe assets, which boosted demand on gold, and pushed prices above $1600 an ounce.Economic fundamentals will be absent from markets on Monday , and accordingly, we shouldn’t expect strong movements, and that means that gold prices will trade within a limited range, albeit with an upside bias, especially if U.S. lawmakers fail to reach an agreement over the weekend, however, an agreement to raise the debt ceiling could send gold prices lower, since demand for safe assets including gold will drop, and that will push gold prices lower. (source CommoditiesMansion.com ) For the latest updates PRESS CTR + D or visit Stock Market news Today
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