Home / TIPS / MTECHTIPS:-Gold Gains Amid Economic Worries, Technical Breakout

MTECHTIPS:-Gold Gains Amid Economic Worries, Technical Breakout

Gold jumped today amid global economic worries, rising geopolitical tensions and a strong undertone in physical demand from the major importers. Equities stayed in a fix after recent array of gains as traders eyed rising geopolitical worries and US economic data showed a mixed picture. Russian and Syrian airstrikes continued to hit ISIS targets.However, the scenario became intense after another violation of Turkish airspace by Russian planes. COMEX Gold futures extended their recent gains in Asia amid these cues and currently trade at $1150 per ounce, up 0.30% on the day. The MCX Gold futures are trading at Rs 26714 per 10 grams, up 0.35% on the day after testing highs near Rs 26800 levels.The IMF’s latest World Economic Outlook (WEO) foresees lower global growth compared to last year, with modest pickup in advanced economies and a slowing in emerging markets, primarily reflecting weakness in some large emerging economies and oil-exporting countries. Six years after the world economy emerged from its broadest and deepest postwar recession, the holy grail of robust and synchronized global expansion remains elusive,according to Maurice Obstfeld, the IMF Economic Counsellor and Director of the Research Department. Despite considerable differences in country-specific outlooks, the new forecasts markdown expected near-term growth marginally but nearly across the board. Moreover, downsiderisks to the world economy appear more pronounced than they did just a few months ago.Global real GDP grew at 3.4% last year, and is forecast to grow at only 3.1% this year.Growth is expected to rebound to 3.6% next year. The US dollar stayed weak yesterday. The US exports fell in August to a three-year low following a stronger US dollar and lackluster global economy. A 2% drop in exports pushed the US trade deficit to a five-month high of $48.3 billion, the Commerce Department Reported. The trade gap was 15.6% higher compared to a revised $41.8 billion deficit in July. The greenback is quoting around 1.1260 mark against the Euro right now. Weakness in dollar is supportive for gold as the yellow metal is hovering around its two week highs.The counter broke its 100 day Exponential Moving Average yesterday on a closing basis.

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