Gold prices inclined as the USD lost strength despite the German and Portuguese bond auctions that showed an spike in demand, increasing demand on the euro- area common currency, accordingly, the euro rose against US dollar, while stocks in Europe pared early gains.
Euro advanced sharply against the U.S dollar after the International Monetary Fund said that it could expand its capacity to 1 trillion dollars from 385 billion dollar in order to support the global economy and prevent the debt crisis from spreading outside the euro-area region.
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.
Gold Pivot Points (Time Frame: 1 Day)
Name S1 S2 S3 Pivot R1 R2 R3