Gold prices up on expectations of lower rates, IMF warnings by Investing.com

Investing.com – Gold prices in huts rose for the seventh consecutive day Thursday in Asia, enjoying residual support, anticipating the assumption that the Federal Reserve will have to cut rates this year. year to maintain economic growth.

at the August delivery, traded on the Comex division of the New York Mercantile Exchange, rose 0.2% to $ 1,333.60 an ounce at 12:43 pm (ET) (04:43 GMT).

The August contract for August has risen about 4% since May 29th. Expectations of Fed rate cuts, deterioration of Sino-US trade relations and unexpected tariffs on Mexican products were cited as a brake on gold for the shelter.

Federal Reserve Chairman Jerome Powell said in a speech that the central bank would do everything in its power to maintain the almost record growth of the US economy, in the context of President Donald Trump's trade wars.

The International Monetary Fund's warning that China's growth could slow down next year in the context of the US trade war has further weakened investor sentiment and pushed gold prices higher. above.

The IMF said it expects the world's second-fastest-growing economy to slow to 6 percent next year and 5.5 percent by 2024 after Sino-US trade talks deteriorated last month.

US-Chinese tariffs, which have been implemented and proposed, could reduce global economic output by 0.5 percent in 2020 and evaporate some $ 455 billion in gross domestic product, the IMF warned.