After three consecutive trading sessions of losses, bullion gained as central banks indicated they will increase efforts to spur growth and development in the economies they support. The International Monetary Fund said on Tuesday that the global economy will increase 3.3 percent this year, representing the slowest rate since the economic recession of 2009.
The global regulator forecast next year's economic growth will check in at 3.6 percent.
"The chance of unlimited, cheap central bank liquidity and strong ETF inflows suggest that the price might soon rise towards $1,800" per troy ounce, states a Tuesday report penned by analysts with Commerzbank AG, according to Bloomberg.
At 10:17 a.m. on Tuesday, gold futures increased 0.08 percent, a $1.40 lift to $1,777.10 per troy ounce.
IMF convenes summit
Tokyo is playing host to the global regulator's meetings this week, when delegations from 188 member nations gather in the Japanese capital.
But the meetings are set to begin under the shadow of low growth prospects.
This year's newly released 3.3 percent growth rate and next year's 3.6 percent growth rate were reduced from July figures 3.5 percent and next year's 3.9 percent, respectively.
Struggling growth and fiscal consolidation among the top global economies are likely to harm nations like China and Brazil. China, host of the globe's second-largest economy behind that of the U.S., has been struggling as the nation explores monetary stimulus programs to boost development and growth. Brazil hosts Latin America's largest economy.
There are "alarmingly high" risks for an economic slowdown that delves more deeply, the IMF said, also noting nearly 17 percent chances of the growth rate dropping lower than 2 percent worldwide.
Projections please gold bugs
The price of gold is forecast to rise as a result of the central bank intervention, Reuters reports.
Those banks include the U.S. Federal Reserve, which last month announced a third round of quantitative easing. The central bank's announcement that it would embark on an open-ended plan to purchase bonds is projected to be beneficial to the price of gold looking forward.
"The return of dollar strength has stalled the move in gold, but it's very temporary, we're still on track to see more gains," analyst Michael Lewis with Deutsche Bank told Reuters. "The danger with Greece and Spain is that it does have a tendency to increase the buying of U.S. treasuries, which is dollar supportive. But our sense is that the real driver for the dollar will be real interest rates and real interest rates in the U.S. are negative."
The price of gold futures thus far this year has gained more than 13 percent, which is largely attributable to central bank intervention.
But the yellowish metal also endured some slippage on Tuesday.
Euro zone nations to miss targets
France, Spain and additional countries among the 17-nation bloc are unlikely to meet fiscal targets, according to the IMF.
The ICE dollar index, a metric that gauges the performance of the U.S. dollar as compared to six counterpart currencies, increased from Monday's closing figures to Tuesday morning.
Gold recently came close to returning to values north of the milestone price of $1,800 per troy ounce but the precious metal has slipped during the past few sessions.
The next two-plus months will see the yellowish metal aim to fulfill a 12th consecutive year of annual gains. The record price of gold is $1,923.70 per troy ounce as established on September 7 of last year.
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