Gold up as WB lowers global growth forecast

CHICAGO, June 12 (Xinhua): Gold futures on the COMEX division of the New York Mercantile Exchange rose Wednesday as the World Bank cut its global growth forecast.

The most active gold contract for August delivery rose US$1.1, or 0.09 per cent, to settle at $1,261.2 per ounce.

The precious metal settled higher for the third day in a row as the World Bank cut the global growth forecast to 2.8 per cent for the year. In January the bank projected a growth of 3.2 per cent, based on a harsh winter in the US and geopolitical tension in Ukraine.

Stock markets in Europe, Asia and the US dropped following the cut to global growth forecast, boosting gold's safe-haven appeal.

Market analysts believe that the market is quiet because investors are turning their attention to FIFA World Cup in Brazil, which starts Thursday.

Silver for July delivery gained 0.4 cents, or 0.02 per cent, to close at $19.172 per ounce. Platinum for July delivery lost $1.1, or 0.07 per cent, to close at $1,481.1 per ounce.