Gold up in Asia in light trade with Fed minutes eyed
Published Oct 06, 2015 08:55PM ET
Gold prices up ahead of Fed minutes
Investing.com - Gold prices rose in Asia on Wednesday in light trade with China market shut and holding steady from overnight ahead of Federal Reserve meeting minutes for September.
On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.06% to $1,147.10 a troy ounce.
Silver for December delivery fell 0.40% to $15.920 a troy ounce. Copper for December delivery was up 0.12% at $2.360 a pound.
Overnioght, gold futures rose considerably on Tuesday amid a weaker dollar, as the International Monetary Fund cut its forecast for global economic growth for the second time this year.
On Tuesday, the International Monetary Fund, a Washington-based organization mandated to ensure the stability of the international monetary system, slashed its global economic growth forecast for the second time in 2015. Citing weakness in China and soft commodity prices, the IMF estimated that the world's economy will grow at 3.1% this year and 3.6% in 2016. Both estimates are 0.2% below the IMF's July forecasts. In April, the IMF downgraded its 2015 forecast by 0.4% and its growth forecast for 2016 by 0.2%.
When projecting short-term growth in the U.S., the IMF estimates that its economy will grow 2.6% this year and by 2.8% in 2016. The IMF also expects growth in the euro zone to increase by 1.5% and 1.6% in 2015 and 2016 respectively. In Japan, the organization projects economic growth of 0.6% this year and a full 1.0% in 2016.
The IMF also forecasts a sharp deceleration in growth among emerging markets, as commodity prices continue to plummet. In its latest forecast, the IMF cut growth in emerging markets to 4% for 2015.
"Prospects across the main countries and regions remain uneven," the IMF said in its October, 2015, World Economic Outlook. "Relative to last year, the recovery in advanced economies is expected to pick up slightly, while activity in emerging market and developing economies is projected to slow for the fifth year in a row, primarily reflecting weaker prospects for some large emerging market economies and oil-exporting countries.
Gold is viewed as a safe-haven for investors in periods of economic instability.
In China, the IMF forecasts growth of 6.8% this year and 6.3% in 2016. Annual economic growth in China has not dipped below 7.0% in more than a decade.
Meanwhile, Chinese markets remained closed on Tuesday for its National Day holiday. China is the world's largest producer of gold and the second-largest consumer of the precious metal.
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Written By: Investing.com
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