Gold Forecast Jan. 23, 2012, Fundamental Analysis

Gold Forecast Jan. 23, 2012, Fundamental Analysis
Gold Forecast Jan. 23, 2012, Fundamental Analysis
Gold prices declined on Friday as the USD gained strength after The Daily Telegraph’s report said that the IMF will downgrade the global growth outlook for 2012 to 3.3% from 4.0%.

The IMF sees a 2.2 percent contraction for Italy and a 1.7 percent growth decline for Spain, as economies are weighed down by fiscal austerity measures, The IMF also urged the European Central Bank to boost liquidity to stave off a deeper Euro zone crisis.

Accordingly, we should expect more fluctuations for gold, but should the current pessimism persist, we should expect gold prices to extend the rallies, however, the level of uncertainty is very high, and investors are ought to remain cautious.

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