Gold was trading near its lowest in a week on Wednesday, after sharp overnight losses, on speculation about further cuts to the U.S. Federal Reserve’s stimulus measures and an improving outlook for the global economy.
Spot gold was little changed at $1,242.19 an ounce by 0018 GMT, after falling nearly 1 percent on Tuesday on fears that Fed will announce a second cut to its bond purchases in its policy meeting next week.
The International Monetary Fund raised its global growth forecast for the first time in nearly two years, saying fading economic headwinds should permit advanced nations to pick up the mantle of growth from emerging markets.
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