Metals and Stocks Take Another Tumble

Author: Jon Clarke - Bullion & Economics Editor

Published: 13 Oct 2020

Last Updated: 15 Oct 2020

Synopsis

The stock market and precious metals slipped throughout Tuesday afternoon as the International Monetary Fund (IMF) gave updates on their latest economic forecasts.

Credit: Ahmad Ardity from Pixabay

IMF News Triggers Disruption

Gold fell from £1,476.84 throughout the afternoon to £1,456.04 by 4pm UK time. Silver also dropped from £19.19 to £18.62 in the same period.

The fall which occurred while the IMF gave their report and forecasts for the coming months as the COVID-19 pandemic looks set to slow the possibility of any economic growth.

Chief Economist for the IMF, Gita Gopinath, stated that the crisis was “far from over”, even as labour markets had rebounded slightly from the previous lows at the height of the pandemic. Gopinath also predicted a “long, uneven and highly uncertain” ascent out of the economic lockdown with growth expected to rise in early 2021.

Another spokesperson said that unprecedented policies have contained some stability risks, while others appear stretched due to the increased liquidity of the financial system.

Price Drop May Spur Further Buying

A full global recovery seems to be a long way off, which may lead some investors to consider liquidating certain assets in their portfolios. The drop, however could still be beneficial to those looking for cheaper prices.

As markets opened Wednesday morning, prices began to rally, appeasing some investors.

Gold Price - Weekly

Silver Price - Weekly

Further Reading

You might like to read our precious metals and coin news articles.

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