Gold reached a new high of $1,829.70 in Thursday trading on increasingly bleak economic forecasts from Morgan Stanley, Goldman Sachs and Deutsche Bank AG.
In the US, Morgan Stanley announced that it downgraded its global growth forecast for 2011 from 4.2 percent to 3.9 percent. Goldman Sachs also lowered it’s GDP growth forecasts, anticipating 4.0 percent growth in 2011 and 4.4 percent in 2012.
The Deutsche Bank also slashed its economic growth forecasts worldwide, including China. The bank reduced its outlook for China’s growth from 9.1 percent to 8.9 percent.
For more information, read the Bloomberg report.