Gold Settles Higher As Risk Appetite Wanes On Growth Worries

Trading 09 avr 2019 Donner votre avis

Gold prices moved higher on Tuesday as the dollar eased against major currencies equities edged lower as growth worries resurfaced after the International Monetary Fund cut its global economic growth forecast for the year.

Brexit uncertainty, the Trump administration's threat of imposition of tariffs on a range of EU goods and skepticism about U.S.-China trade agreement, all dented investor sentiment.

The dollar index dropped to a low of 96.86, but recovered to 97.02 as the session progressed.

Gold futures for June settled at $1,308.30, gaining $6.40 for the session.

On Monday, gold futures for June ended up $6.30, or 0.5%, at $1,301.90 an ounce.

Silver futures for May ended up $0.005, at $15.211 an ounce, while Copper futures for May settled at $2.9340 per pound, up $0.0020 from previous close.

On Monday, the United States threatened that it would impose tariffs on a wide range of goods from Europe, protesting against subsidies given to Airbus.

U.S. Trade Representative Robert Lighthizer estimates the harm from the EU subsidies as $11 billion in trade each year, with the amount subject to arbitration at the World Trade Organization.

According to reports, the U.S. may impose tariffs on about $11 billion of EU products ranging from aircraft parts to wine.

Meanwhile, a European Commission spokesman called the estimated adverse effects of the subsidies "greatly exaggerated" and pledged to retaliate against any new U.S. tariffs.

The IMF today downgraded its outlook for growth in the United States, Europe, Japan and the overall global economy, citing the trade tensions, weaker business confidence, tighter financial conditions and higher policy uncertainty.

The IMF said in its World Economic Outlook that it expects the world economy to grow 3.3% this year, down from 3.6% in 2018. That would match 2016 for the weakest year since 2009. In its previous forecast in January, the IMF had predicted that international growth would reach 3.5% this year.

The IMF said the growth momentum is expected to gain steam in the second half of this year and projected a 3.6% growth for 2020, unchanged from the January prediction.

In economic releases from U.S. today, a report from the Commerce Department said new orders for U.S. manufactured goods fell by slightly less than expected in the month of February, dropping by 0.5%, after coming in virtually unchanged in the preceding month. Economists had expected orders to slide by 0.6%.


The material has been provided by InstaForex Company - www.instaforex.com

Fatal error: Uncaught Exception: 12: REST API is deprecated for versions v2.1 and higher (12) thrown in /var/www/forex-winner.com/htdocs/wp-content/plugins/seo-facebook-comments/facebook/base_facebook.php on line 1039