Investing.com – Gold prices slipped on Wednesday in Asia even as stocks declined after the International Monetary Fund (IMF) downgraded its economic outlook and puts growth forecast at the lowest levels since 2009.
Gold futures traded on the Comex division of the New York Mercantile Exchange were down 0.1% to $1,306.65 an ounce by 11:10 PM ET (03:10 GMT).
Asian equities and other risk assets fell on Wednesday after the IMF said the global economy should grow by only 3.3% this year, down from the 3.5% forecast back in January.
The safe-haven gold, which usually moves in directions opposite to stocks, also fell today.
The IMF has already cut its forecast twice in the past six months.
“Higher trade policy uncertainty and concerns of escalation and retaliation would reduce business investment, disrupt supply chains, and slow productivity growth,” said the fund. “The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth.”
Looking ahead, traders will likely switch focus to the upcoming minutes of Federal Reserve’s March meeting.
The minutes, due at 2:00 PM ET on Wednesday, will likely provide clues on whether the central bank will continue with its pause on rates or move into an easing.
Investors will be looking for more clues on both the Fed’s near-term and long-term outlook on international risks and the overall economic outlook in the U.S.
Earlier, U.S. President Donald Trump has suggested that the central bank should cut rates to combat a seemingly slowing U.S. economic growth.
Markets also keep an close eyes on the trade front, as reports suggested that the U.S. is considering imposing new tariffs on European goods including new passenger helicopters, various cheeses and wines, ski-suits and certain motorcycles.
Better-than-expected manufacturing data coming out from China and the strong U.S. job reports was cited as supporting the safe-haven gold earlier this week.