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Gold prices rose slightly after the World Bank cut growth forecast for the world economy, as investors increased demand for the precious metal as a safe-haven.
World Bank (WB) lowered its growth forecast of global gross domestic product (GDP) in 2014 from 3.2 to 2.8 percent. This is due to the conflict and the Ukrainian unusually harsh winter in the United States. So, if in January estimate of the growth of the world economy grew by 0.2 percent compared with a forecast in June 2013, it has now dropped to 0.4 percent.
In a new forecast based on the assumption that the conflict between Russia and Ukraine will continue, but it will not happen aggravation. According to Andrew Burns, the lead author of the WB study, the escalation of the conflict could undermine investor confidence. "Markets and investors do not like uncertainty," - he said.
The Bank has lowered its forecast for economic growth for developing countries from 5.3 to 4.8 percent. According to the head of Jim Yong Kim WB, GDP growth rates of countries "remain too moderate" and the third consecutive year will be below 5 percent.
For 2015 and 2016 the World Bank forecast remains unchanged, it indicates an increase in global economic growth by 3.4 or 3.5 percent. According to experts, in the current year expected economic boom due primarily to the fact that the economies of the rich countries continue to recover.
The cost of the August gold futures on the COMEX today rose to $ 1265.5 per ounce.
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