Gold prices rose sharply on Wednesday after major central banks around the globe including the bank of Canada, the Bank of England, the bank of Japan, the European Central Bank, Federal Reserve Bank, and The Swiss National Bank announced a coordinated effort to boost liquidity to the global financial system in order to ease tensions in financial markets, which put the U.S. dollar under huge pressure, as risk appetite improved in markets, where traders targeted risky assets, providing gold accordingly with strong bullish momentum.

Moreover, the ADP employment report from the United States showed that private employers added 208,000 jobs in November, well above median estimates of 130,000, while the Chicago PMI also rose above median estimates, which further supported confidence in markets and boosted demand for risky assets.

Traders will continue to monitor the developments from Europe regarding the debt crisis, where rising yields in Europe, especially in Italy suggest investors are concerned amid the uncertainty that is surrounding the outlook of the EU debt crisis, especially since investors are still skeptic even after EU finance ministers agreed to increase the firepower of the EFSF, and proposed expanding the funding for the IMF to help countries in Europe to withstand the debt crisis.

Traders will be eyeing the ISM manufacturing index for November, which is expected to show rising activities, but before that investors will be eyeing the weekly jobless claims, which are expected to have dropped last week.

Accordingly, we should expect more fluctuations in prices, but if the current wave of optimism prevails, we should expect gold prices to extend their gains, but we should note that the level of uncertainty is very high, and investors are ought to remain cautious.