GLOBAL ECONOMY TO GROW AT SLOWEST RATE SINCE 2009
Startling news out of Europe this morning has caused many investors to seek safe haven investments. The International Monetary Fund (IMF) said that many eurozone countries will miss their budget deficit targets agreed upon with European authorities, causing the euro to fall. This also boosted the safe haven appeal of the U.S. dollar. Strategists at Lloyds Bank in London wrote, “It seems clear that from a growth perspective the dollar looks better supported than European currencies, and with positioning now close to square in the euro, new impetus is required to extend the dollar decline of the last few months.”
Precious Metals are edging higher despite the lower euro price, suggesting a strong safe haven appeal for Gold as well. The IMF lowered growth expectations, saying that global economy growth will come in at around 3.3 percent, which is the slowest since 2009. Analysts at Commerzbank AG believe this will be a boon for Gold, as they wrote, “The chance of unlimited, cheap central bank liquidity and strong ETF inflows suggest that the price might soon rise towards $1,800.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,776.00, Up $0.80.
- Silver, $34.01, Down $0.01.
- Platinum, $1,697.00, Up $1.20.
- Palladium, $661.10, Up $3.20.
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