NEW YORK (Scrap Register): Commerzbank said that the International Monetary Fund’s downwardly adjusted forecast for growth in the global economy in 2018 – a decline of 0.2 percentage points to 3.7% -- should help the outlook for gold.
Above all, this means less tailwind for the stock markets, which have already fallen noticeably in recent days, the bank added.
Gold should profit as soon as this is reflected in rising risk aversion. Analysts also note that there have not been any further significant outflows from gold exchange-traded funds lately, although there likewise have not been fresh inflows.
For the gold price to make any marked gains, the negative sentiment among speculative financial investors also will have to turn, Commerzbank noted.