Markets continue to be wary on weak Asian stock markets and renewed decline in oil prices. International Monetary Fund revised its forecast for global economic growth to 3.4 percent and 3.6 percent in 2016 and 2017 respectively, downgrading by two tenths of a point in each case. Slowdown in China and the weak commodity prices were the main reasons for this decision, IMF cited.
Gold is seen benefiting from this scenario as it hovered the $1,100 per troy ounce mark. Gold in euro terms is still trading at around €1,000 per troy ounce, ahead of the ECB's meet. Simultaneously, silver is seen riding on gold as it has increased to $14.1 per troy ounce.
Gold ETFs holding have increased by 50 tons since the beginning of this year. Bloomberg noted that on 19th January there was an inflow 22.7 ton into gold ETFs, highest daily inflow since October 2011.
