USD continues to strengthen against its opponents. Speculation is happening to the state of the EURO zone economy adds to concerns of investors to the gold price. German Chancellor Merkel's visit to Greece today will be the other crucial event Curiously investors watch out for getting a direction on bullion. A report from the World Bank says that economic growth in East Asian countries Including China will drop to the weakest level since 2001 in the current year.
Concerns over global economic growth provide firm support to the bullion. Meanwhile, Speculative interest in gold remains high with the net long position in U.S. gold futures and options again surging to its highest level since the end of February. Physical activities from Asia remained dull but active participation from China is expected in coming days as their markets reopened today after a week long holiday.
Gold-Euro correlation has eased again to 0.85 from its early peak of 0.96. Over the weekend the IMF's revised global growth. The International Monetary Fund has cut its global growth forecasts for this year and 2013 and called on Politicians in the eurozone and the U.S. to take "decisive" steps to restore confidence, a German newspaper said. Citing excerpts from the IMF's World Economic Outlook to be released early next week, the business daily Handelsblatt said that the Washington-based body predicted world economic growth of 3.3 percent in 2012 and 3.6 percent in 2013.
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