20 Jan 2015
Gold remains well supported by IMF forecasts
FXStreet (Mumbai) - Gold prices remain well supported near four-month highs as the gloomy global growth forecasts published by the International Monetary Fund (IMF) today overshadowed the upbeat Chinese data.
The yellow metal currently trades at USD 1277/Oz levels, compared to the previous session’s close at USD 1275.90/Oz levels. The IMF made the steepest cut to its global growth forecast in three years, citing diminished expectations everywhere except US. The fund now expects the global economy to grow at 3.5% in 2015, down from 3.8%. The IMF forecasts came a week after the World Bank reduced its global growth forecast for 2015.
However, the gains in the metal were capped by a relatively upbeat Chinese data. Chinese full year growth rose 7.4% in 2014, the slowest pace in 24 years, but quarterly data beat expectations. The fourth quarter GDP rose 7.3%, industrial production gained 7.9% in December and retail sales increased 11.9%, all beating expectations.
The metal may see some weakness as the major European index futures are pointing to a strong opening today.
Gold Technical Levels
The immediate resistance located at 1278.70, above which gains could be extended to 1282.40 levels. Meanwhile, support is seen at 1272.50 and 1267.20 levels.
The yellow metal currently trades at USD 1277/Oz levels, compared to the previous session’s close at USD 1275.90/Oz levels. The IMF made the steepest cut to its global growth forecast in three years, citing diminished expectations everywhere except US. The fund now expects the global economy to grow at 3.5% in 2015, down from 3.8%. The IMF forecasts came a week after the World Bank reduced its global growth forecast for 2015.
However, the gains in the metal were capped by a relatively upbeat Chinese data. Chinese full year growth rose 7.4% in 2014, the slowest pace in 24 years, but quarterly data beat expectations. The fourth quarter GDP rose 7.3%, industrial production gained 7.9% in December and retail sales increased 11.9%, all beating expectations.
The metal may see some weakness as the major European index futures are pointing to a strong opening today.
Gold Technical Levels
The immediate resistance located at 1278.70, above which gains could be extended to 1282.40 levels. Meanwhile, support is seen at 1272.50 and 1267.20 levels.