Gold extended gains for a third session on Wednesday as IMF to cut global growth estimates. Investors towards safe investments have outperformed the market. In the international market, gold has risen upwards of $1210. With the decline of silver is trading above $17.
Bullion for immediate futures delivery rose as high 0.5 percent to $ 1,214.85 an ounce and was bid at $ 1213.75 in Singapore. Gold December futures delivery quoted at $ 1.214 an ounce on the Comex in New York from $ 1212.40 yesterday.
Holdings in the SPDR Gold Trust remained flat for a third day yesterday at 767.47 metric tons, the lowest since December 2008.
The IMF cut its worldwide economic growth estimates for the third time this year on Tuesday, warning of a weaker countries of the euro zone core, Japan and big emerging markets such as Brazil area growth.
The Washington-based lender cut its expectations for global growth to 3.3 percent this year and 3.8 percent next year. In July, a 3.4 percent growth in 2014 and 4 percent in 2015 expected.
Forecast cuts hurt world stocks dipped sharply, yesterday.
Gold, often seen as an investments alternative to stocks, cattle conjunction with other safe-haven assets such as the Japanese yen and the US Treasuries. A weaker US dollar also helped.
Bullion investors were awaiting for the return of China, after a national day holiday weekends. Robust shopping from the world’s largest consumer of the metal could boost prices.
India and China’s robust growth in consumer demand would only benefit the demand for physical gold. Demand in India is established to pick prior to the festival of Diwali, on October 23. said 100 Mcx Tips.
To firm up of international market, domestic prices have been getting support. With nearly 0.5 per cent gains on MCX gold has risen above Rs 26,900. While with 0.5 per cent jump, silver is over Rs 38500.
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