Gold Pulls Back Under $1900 Per Ounce

Published on Oct 14, 2020 11:42

COMEX Gold slumped on Indian retail demand worries as the the International Monetary Fund (IMF) expects India`s gross domestic product (GDP) to decline by 10.3% in FY21. It revised India`s GDP growth, since its June forecast of a 4.5% drop, reflecting a severe-than-anticipated contraction in economic activities in Q1 FY21, amid the nationwide lockdown due to the COVID-19 pandemic. IMF noted that in the group of emerging economies revisions to the forecast are particularly large for India, where GDP contracted much more severely than expected in the second quarter. COMEX Gold also eyed a tepid reading on US inflationary front and failed to sustain after hitting a three week high of $1239 per ounce on Monday. Prices tanked 1.80% to slide under $1900 per ounce. Meanwhile, the US Labor Department said its consumer price index rose by 0.2% in September after climbing by 0.4% in August. Excluding food and energy prices, core consumer prices still edged up by 0.2% in September following the 0.4% growth seen in August.