Gold prices go up after IMF growth forecast

Gold prices go up after IMF growth forecast

Gold prices rebounded to close at a one-week high after the International Monetary Fund (IMF) lowered its forecast for global economic growth.

Closing the session on October 12, spot gold on the New York market rose slightly by 0.35% to $1,760 an ounce.

In the world economic outlook report released on October 12, the IMF said that the global economy will grow by 5.9% this year, slightly down from the last forecast published in July. that the economy in 2022 will grow 4.9%, lower than the previous forecast. For the US economy in 2021, the IMF lowered its growth forecast of 1% to 6%.

Naeem Aslam, head of analytics at AvaTrade, commented: "The IMF report has shown a worsening US economic outlook and this makes gold an asset of more interest. However, the gold price. The increase may take place in the short term because the buying pressure is not high at the moment.

Gold Newsletter editor Brien Lundin commented: "Any sign of an economic slowdown is really good for gold as it could mean more monetary policy easing from the banks. central banks of countries".

On October 12, Fed Vice Chairman Richard Clarida said that developments in the labor market suggest it is time to scale back the asset purchase program.

Yields on 10-year US Treasury bonds closed at 1.583% from 1.604% on October 8. The US Treasury bond market closed in the session on October 11. The Dollar Index rose 0.2% to 94.54 points in the session of October 12.

The pause in the US Treasury bond yields and the appreciation of the dollar will likely negatively affect gold prices.

Meanwhile, worries about inflation as the global economy recovers from the shock of the pandemic has affected the outlook for gold prices. An overheating economy could force central banks to raise interest rates sooner.

Three major indexes on the US stock market fell at the close of the session on October 12. The Dow Jones Industrial Average fell 0.2 percent to 34,378.3 points; The S&P 500 fell 0.2 percent to 4,350.6; Nasdaq fell 0.1% to 14,465.9 points.

According to the latest assessment of Bank of America, this week, the US stock market will mainly trade in a moderate state. Bank of America expert emphasized in the research: "The latest figures do not have many mutations, the market is waiting for more big information such as September consumer price index (CPI) and retail sales, minutes of the FOMC meeting or the third quarter business results announcement season".

September consumer price index is expected to be announced on the morning of October 13 in the US. Economists believe that compared to the previous month, the consumer price index increased by 0.3% in September. Investors will wait for this information to be able to forecast more about the policy adjustment plan. Fed currency.

This week, many large US enterprises will announce third-quarter business results such as JP Morgan Chase, Delta Air Lines. There are also many other typical companies in the financial industry such as Bank of America, Walgreens Boots Alliance, Wells Fargo, Morgan Stanley, Citigroup and Goldman Sachs.

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