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14 Apr 2015
Gold rises after IMF revises US growth forecasts lower
FXStreet (Mumbai) - Gold prices recovered sharply after the International Monetary Fund (IMF), in its World Economic Outlook, revised the US GDP forecasts for 2015 lower.
Gold gains on weak economic outlook
The yellow metal recovered to USD 1196/Oz as investors piled into safe haven assets after the IMF revised US 2015 growth forecast to 3.1% vs 3.3% in January. The markets did not appreciate the weak forecasts, thereby sending the US dollar lower, while traditional safe havens - Gold, Treasuries, Yen higher.
The metal could extend gains further in case the US equity markets turn risk averse in response to a weaker-than-expected US advance retail sales figure and due to IMF’s weak growth forecasts.
Gold Technical Levels
The metal currently trades at USD 1196/Oz. The immediate resistance is seen at 1200.76 (5-DMA), above which gains could be extended to 1205.1. On the flip side, support is seen at 1193.1 and 1183.7 levels.
Gold gains on weak economic outlook
The yellow metal recovered to USD 1196/Oz as investors piled into safe haven assets after the IMF revised US 2015 growth forecast to 3.1% vs 3.3% in January. The markets did not appreciate the weak forecasts, thereby sending the US dollar lower, while traditional safe havens - Gold, Treasuries, Yen higher.
The metal could extend gains further in case the US equity markets turn risk averse in response to a weaker-than-expected US advance retail sales figure and due to IMF’s weak growth forecasts.
Gold Technical Levels
The metal currently trades at USD 1196/Oz. The immediate resistance is seen at 1200.76 (5-DMA), above which gains could be extended to 1205.1. On the flip side, support is seen at 1193.1 and 1183.7 levels.