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Gold holds gain as investors weigh outlook for global economy

Wednesday, July 20, 2016 - 11:03
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Gold held an advance as Asian stocks retreated from near a three-month high amid concerns that the outlook for the economy is worsening, boosting demand for havens.

[SINGAPORE] Gold held an advance as Asian stocks retreated from near a three-month high amid concerns that the outlook for the economy is worsening, boosting demand for havens.

Bullion for immediate delivery traded at US$1,332.95 an ounce at 9:54 am in Singapore, from US$1,332.01 on Tuesday, when it rose 0.2 per cent, according to Bloomberg generic pricing.

Gold has rallied 26 per cent this year as investors flocked to haven assets amid volatility in financial markets and turmoil spurred by the UK's vote to leave the European Union.

The International Monetary Fund scrapped its forecast for a pickup in global growth this year, citing Brexit.

While bets on a Federal Reserve rate increase have crept up this month amid improving US data, traders are still pricing in less than even odds of an increase until mid-2017.

BLOOMBERG