Gold price up 0.6 pct

Gold prices rose for the second consecutive day on Wednesday on the return of safe-haven buying after the IMF downgraded its global GDP outlook for this year. Spot gold was last at $1,217.50/1,218.20 per ounce, up $8 on Tuesday’s closing level and moving further away from key support at $1,200 and below there at $1,180. On Tuesday, the IMF lowered its global GDP growth forecast for the third time this year to 3.3 per cent from 3.4 per cent. The eurozone bore the brunt of the change – the bloc is now seen growing just 0.8 per cent this year and potentially suffering from deflation. The IMF also made downgrades to Japan, whereas China is still tipped to grow 7.4 per cent this year and 7.1 per cent next year. Gold had been struggling in recent sessions, testing $1,180 on a combination of factors including strong equities, a strong US dollar and a lacklustre response to global political cues, according to bulliondesk.com