Gold Prices Increased On Oct 13, As IMF Marginally Cuts Global Economic Growth

It has reported that the Gold rates in the international future and spot markets have increased. The trend has been reflected in the Indian markets, and the IBJA has gained the domestic gold rates by Rs. 260/10 grams. Today, 22 carat gold rates are quoted at Rs. 46,290/10 grams and 24 carat gold rates are quoted at Rs. 47,290/10 grams. The Comex gold future hiked by 0.48% and was quoted at $1767, while the spot gold prices hiked by 0.48% and were quoted at $1768/oz till 2.48 PM IST.

On the other hand, the US dollar index in the spot market stayed at 94.34 at the same time, fell by 0.20% than yesterday’s position. In India, the Mumbai MCX Gold in October future gained by 0.27% today till 2.25 PM IST and was quoted at Rs. 47,326/10 grams. As the US dollar index dropped in the international spot market, gold prices have gained marginally, the report said.

IMF Marginally Cuts Global Economic Growth

Good Returns, a news website said that the International Monetary Fund (IMF) is worried, global economy’s recovery from the pandemic is being slowed down due to the delta variant Covid. The IMF has also revised its projection and mentioned, the global economy can grow at 5.9% in 2021 and 4.9% in 2022. The global growth anticipation for 2021 was dragged down marginally from 6% by the IMF. Hence this impacted the global gold markets, investors are again focussing on gold as a hedge asset.

The IMF has mentioned, “This modest headline revision, however, masks large downgrades for some countries. The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions.” On the other hand, the US’s 2021 growth forecast has been reduced from 7% to 6% due to supply constraints.

The IMF can also plunge the US projection further if the country does not pass President Joe Biden’s infrastructure package worth $4 trillion, the IMF warned. Hence, anticipating the US along with the global economy is not in a very promising position, gold prices gained immediately. (Source: Good Returns)