Gold Prices Fall Despite IMF’s Downgrade on Global Economic Growth

Investing.com – The safe-haven gold fell on Tuesday in Asia even after the International Monetary Fund (IMF) trimmed global growth forecasts.

Comex were down 0.3% to $1,278.65 a troy ounce by 1:10 AM ET (6:10 GMT). The precious metal fell to a low of $1,276.80 earlier on Monday, their lowest level of the year so far.

In its World Economic Outlook report released on Monday, the IMF predicted the global economy would grow at 3.5% in 2019 and 3.6% in 2020, down 0.2 and 0.1% respectively from last October’s forecasts.

“After two years of solid expansion, the world economy is growing more slowly than expected and risks are rising,” IMF Managing Director Christine Lagarde told reporters.

“Does that mean a global recession is around the corner? No. But the risk of a sharper decline in global growth has certainly increased,” she said, urging policymakers to brace for a “serious slowdown.”

While the report lifted other safe-haven assets including the U.S. dollar and the yen, gold prices were little impacted.

In other news, China’s National Development and Reform Commission (NDRC) warned on Tuesday that downward pressure on the economy would impact the country’s job market.

“From the viewpoint of ‘changes’, the external environment is complex and austere,” said Meng Wei, spokeswoman at the NDRC.

“Within the changes, there is something to worry about, and there is downward pressure on the economy. To a certain extent, the pressure will be passed onto jobs,” Meng added.

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