Hsbc.co.uk: global economy slowdown gold price reversion

Hsbc.co.uk stated that yesterday the IMF lowered the global economic growth expectation of 2013 and 2014 as the result of the slower growing speed of emerging market and economic recession in Euro zone, which may confine the amount of increase of gold price.

IMF reduced in the global economic outlook on Tuesday the economic expectation of 2013 and 2014 both by 0.2 percent to respectively 3.1 percent and 3.8 percent.  

As hsbc.co.uk points out, the slowdown of global economy is not good news to precious metal. At first, it means that platinum, palladium, and silver which are closely related to industry will have to bear pressure. Meantime, the negative expectation of future inflation by IMF is not optimistic.

Besides, it also said that recent rise in gold price mostly results from emerging market assets. Therefore, the negative expectation will prevent the gold price from rising. But a good new is that because the future financial market will fluctuate violently, the gold price is predicted to be reversed.