Gold Declines on Global Economic Concerns

Gold futures fell on Tuesday due to rising concerns over global economic scenario. While stronger dollar also kept commodities under pressure, investors were also more focused on corporate earnings.

Gold futures contract for December delivery fell 0.6 percent or $10.70 to settle at $1,765 per ounce on the Comex division of the New York Mercantile Exchange. The precious metal remained volatile in the whole session and touched its intraday low of 1,762 per ounce of the day. Gold was also under pressure on Monday in reaction of reduced outlook for Chinese economic growth by World Bank and fell 0.3 percent or $5.10 to $1,775.70 per ounce.

On Tuesday same action was seen by the International Monetary Fund which downgraded its forecast again for global economic growth to 3.3 percent this year as compared to its earlier projection of 3.5 percent in July. For the year 2012 the IMF revised its forecast to 3.6 percent as compared to 3.9 percent in July. The IMF also indicated that Spain, France and other European countries won’t be able to meet their fiscal targets which also worried investors. US dollar was only choice of a safe haven status according to many analysts. The dollar index DXY which measure the US dollar movement versus its rivals gained to 80.015 on Tuesday as compared to 79.595 on Monday’s North American trading session.

Among other metals, copper futures contract for December delivery remained unchanged at $3.72 per pound while silver futures for the same month slipped 0.1 percent or $0.03 to settle at $33.99 per ounce.

Platinum futures contract for January delivery dropped 0.2 percent or $3.50 to settle at $1,695.30 per ounce while palladium futures for December gained 0.2 percent or $1.25 to settle at $658.20 per ounce.

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