Spot gold price climbed on Wednesday during the Asian session to hit $1,300 per ounce, its highest since August 19 2014.
The metal has climbed close to 10 percent since the start of the year, boosted by various macroeconomic events, including the slump in oil prices at the start of the year and the recent move to remove the currency cap against the euro by the Swiss National Bank.
Investors have been piling into the safe haven metal amid a gloomy global growth picture as well as the potential for more central bank easing.
Just yesterday, the International Monetary Fund (IMF) downgraded its global growth forecasts. IMFslashed its 2015 and 2016 global growth forecasts by 0.3 percentage points to 3.5 percent and 3.7 percent respectively, with downgrades across the board apart from the bright spot in US.
Meanwhile, China announced its 4Q14 GDP growth of 7.3 percent which was in line with market expectations and brought the full year growth to 7.4 percent, which was close but slightly below the expected 7.5 percent growth target the Chinese government had set for itself.
The financial markets will also be keenly watching the European Central Bank meeting scheduled for Thursday, as lacklustre growth is seen as a potential catalyst for quantitative easing policies, pushing investors to seek value in safe haven assets such as gold.
The post Gold price rises on weak global growth forecasts, central bank easing prospects appeared first on The Bullion Desk.
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