Gold rises for first time in 5 days as EU cuts growth estimates
Frankfurt (Nov 4) Gold rose for the first time in five days after the European Commission cut its growth forecasts for the euro area. Silver pared losses.
Gold for immediate delivery climbed 0.5% to $1,171.22 an ounce by 12:01 pm in London, according to Bloomberg generic pricing. The metal earlier fell as much as 0.1%. Gold for December delivery added 0.1% to $1,171 on the Comex in New York.
Gross domestic product in the 18-nation euro region will rise by 0.8% this year and 1.1% in 2015, down from projections for 1.2 and 1.7% in May, the Brussels-based commission said today. It lowered its projections for Germany, Europe’s largest economy, and said inflation in the euro area will be even weaker than the European Central Bank predicts.
The bleaker outlook highlights the fledgling nature of the euro area’s recovery and the deflation threat that has compelled the ECB to take unprecedented stimulus measures.