Gold up as IMF cuts growth forecast
Duncan Richardson, News Editor
8 Oct 2014, 9:57 a.m.
The gold price advanced for the second consecutive day yesterday following the International Monetary Fund’s (IMF) decision to cut their global growth forecast by 0.3% to 3.4%.
The gold price rose and the dollar fell after the IMF warned of lower growth in Japan, France, Germany and emerging markets such as Brazil. Stock market indices across the globe fell, with the S&P falling over 1% and the FTSE 100 also retreating.
German industrial output fell at its fastest rate since 2009 boosting gold’s safe haven appeal. The main stock market in Germany has fallen over 4% since the start of October.
The gold price rose 0.4% yesterday following a 1.4% rise on Monday. With the majority of China returning to work today after a week’s holiday, physical demand is expected to increase today.
Gold is currently trading at £758.29 per ounce, silver £10.80 per ounce, platinum £797.06 per ounce and palladium £495.22per ounce.