OctaFX – World markets fell today after a disappointing outlook by the International Monetary Fund (IMF). The body lowered the GDP estimates for the world economy to 3.7% from the previously released 3.9%.
World Markets Falls
This was attributed to the ongoing shocks in the market brought by the US decision to engage in a trade war. Today, the US sent a sharp message to China that future talks were at risk.
The White House said that the meeting between the US and China at the upcoming G20 meeting will only take place when a list of concessions from China is delivered to the US.
Chinese officials responded that they had a list of concessions but would only release it if the political environment in the United States is positive. US officials believe that China is not ready to offer substantive policy changes.
XAUUSD Price Falls
The XAUUSD pair declined today as the US dollar index rose. The pair reached an intraday low of 1183. On the four-hour chart below, the pair has been trading within a narrow range between 1180 and 1213.
The current price is along the lower band of the Bollinger Bands. It is also close to the floor of this pattern. There is a likelihood that the pair will continue to move lower, potentially to the 1180 level.
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