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Gold Price Forecast: XAU Faces Tough Path Despite Economic Growth Woes

October 13, 2021

Via: DailyFX

The price of gold caught a bid overnight, although it appears bulls aren’t too keen to capitalize on further upside. XAU/USD is nearly unchanged for October following last month’s 3.14% drop. Overall, the fundamental outlook remains skewed to the downside as central banks appear to be all but locked in to hike rates later this year and next.

Gold typically underperforms in higher rate environments. Market-based measures continue to price in more aggressive central bank hiking. The International Monetary Fund’s (IMF) latest World Economic Outlook update published Tuesday shaved 0.1% off global growth for 2021, from 6.0% to 5.9%. That follows a downgrade in US growth from Goldman Sachs earlier this week.

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