Commodity News
HeadLine : Gold Edges Higher After IMF Shaves World Growth Forecast
Date : Jan 21 2020
Gold prices drifted fractionally higher on Monday as U.S. markets remained closed for the Martin Luther King holiday while European ones were content to await the European Central Bank’s policy meeting later this week for clues as to how long the current regime of negative interest rates will last. Prices ticked up slightly after the International Monetary Fund kept its gloomy outlook for 2020, shaving its forecast for global growth this year to 3.3% from 3.4% in October. The forecasts for the U.S. and euro zone were both revised down by the same amount. The Fund also cut the forecast for 2021 by 0.2 percentage point to 3.4%, citing the slowdown in India and other emerging markets as additional factors. Gold futures for delivery on the COMEX exchange were at $1,560.55 a troy ounce, unchanged from Friday’s close, while spot gold had edged 0.3% higher to $1,56048. an ounce. Elsewhere, silver futures fell 0.1% to $18.06 while platinum rose 0.3% to $1,028.00. Palladium, an industrial metal rather than a store of value, rose 3.0% on further concerns about supply out of a South Africa suffering from an energy crisis, rising briefly above $2,300 for the first time before retracing to $2,288.55. Precious metals received no visible support from the unrest at the weekend in Iraq, which contributed to a modest spike in oil prices. The dollar, however, did remain well bid, something that usually puts downward pressure on the dollar-denominated gold price.

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