Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.6% after the IMF issued a stark warning about the eurozone and world economies, damping risk appetite and boosting the dollar. In its semi-annual economic outlook, the IMF slashed its forecast for global growth to 3.3% this year, the slowest since the 2009 recession, and 3.6% next year because of the eurozone debt crisis. In addition, France, Spain and several other eurozone governments will fail to meet budget deficit targets, the IMF says, intensifying the problem. Global equities plummeted, with the Dow dropping 110 points and the Global Dow losing 1%. Treasuries turned higher as investors sought safety, pushing the dollar up and gold down for the third consecutive session. Silver also lost 0.6% while platinum slipped 0.2% and palladium added 0.2%

At the Comex close: December gold slid $10.70 to $1,765; December silver lost 3 cents to $33.99; January platinum dropped $3.50 to $1,695.30; and December palladium added $1.25 to $658.20 an ounce.

Gold's losses were cushioned today by more easing out of China. The People's Bank of China pumped more than $42 billion into the Chinese banking system in order to lower borrowing costs and stimulate the economy. It was the second injection of liquidity in two weeks, and the second-largest injection of its kind ever. The increased monetary easing adds to the rising risk of inflation, which is boosting demand for gold in Asia.