IMF Downgrades Global Economic Outlook: Gold (GLD) and Silver (SLV) Decline
Gold prices eased from six-week highs as the U.S. dollar (NYSE:UUP) showed some stability Tuesday. The euro fell to as low as $1.2954 as the International Monetary Fund reminded the financial markets about the dismal global outlook.
Investor Insight: Currency Wars Are Driving Gold and Silver Higher
The IMF warned on Tuesday that the ongoing European debt crisis is casting a shadow on the economic outlook for most of the world, causing the IMF to lower its growth forecasts for all but one country: the United States.
The IMF now expects the global economy to grow 3.3 percent in 2012, according to an update to its World Economic Outlook, down from a 4 percent September projection. Despite the weaker global outlook, and a European downturn that will likely see many euro states falling back into recession, the United States was the one country that did not have its forecast lowered by the IMF, which still expects activity in the U.S. to expand 1.8 percent in 2012.
Don’t Miss: IMF Lowers Global Economic Outlook for 2012
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) declined .77 percent, while the iShares Silver Trust (NYSEARCA:SLV) fell .95 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) both dropped more than 2 percent, while AngloGold (NYSE:AU) fell 1.5 percent. Silver miners (NYSEARCA:SIL) such as Endeavour Silver (NYSE:EXK) and First Majestic (NYSE:AG) declined by 2.15 percent and .90 percent, respectively.
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