Gold holds gains as Fed cuts economic view

Jun 19 2014, 08:36 IST
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Gold jewellery exports from India are likely to grow by a quarter in the year to March 2015. (Reuters) Gold jewellery exports from India are likely to grow by a quarter in the year to March 2015. (Reuters)
SummaryGold jewellery exports from India are likely to grow by a quarter in the year to March 2015.

Gold held on to modest overnight gains on Thursday after the Federal Reserve cut its outlook for U.S. economic growth.

Spot gold was little changed at $1,278.20 an ounce by 0029 GMT, after rising 0.5 percent on Wednesday on safe-haven bids. The Fed slashed its U.S. growth forecast for 2014 from 2.9 percent to a range of between 2.1 percent and 2.3 percent, and lowered projections for the long-run target interest rate.

However, the Fed expressed confidence the US economic recovery was on track and hinted at a slightly more aggressive pace of interest rate increases starting next year.

A discussion by gold buyers and sellers across the market on ways to reform or replace London's global price benchmark, known as the "fix", will be held next month by the World Gold Council.

Gold jewellery exports from India are likely to grow by a quarter in the year to March 2015, helped by an expected relaxation of its import policy and recovering demand from major consuming countries, the head of a trade body said.

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