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Gold falls despite lower IMF outlook for U.S. GDP

Published 04/11/2013, 08:23 PM
Updated 04/11/2013, 08:24 PM
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Investing.com - Gold futures are trading to the downside in the early part of Friday’s Asian session despite a lower GDP growth outlook for the U.S. from the International Monetary Fund.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.26% to USD1,580.65 per troy ounce in Asian trading Friday after settling up 0.30% at USD1,563.45 a troy ounce in U.S. trading on Thursday.

Gold futures were likely to test support USD1,553.15 a troy ounce, the earlier low, and resistance at USD1,590.05, Tuesday's high.

Soon after the close of U.S. markets Thursday, the IMF released a draft of its World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%.

On Wednesday at a speech given before the Economic Club of New York, IMF Director Christine Lagarde urged global central banks to keep their ultra-loose monetary policies in places to support economic growth.

Loose monetary policy has also been seen as supporting gold over the past few years and some traders are skittish that if the Federal Reserve winds down or ends quantitative easing this year, gold futures will be hammered.

In U.S. economic news out Thursday, initial claims for jobless benefits fell to 346,000 last week from 388,000 in the previous week. Economists expected a reading of 360,000 new claims. The less volatile four-week moving average rose to 358,000 from 355,000.

Elsewhere, Comex silver for May delivery fell 0.35% to USD27.600 per ounce while copper for May delivery inched higher by 0.01% to USD3.428 per ounce.


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