Gold prices holding gains above $1,700 as IMF upgrades global growth outlook to 6% for 2021

“The outlook presents daunting challenges related to divergences in the speed of recovery both across and within countries and the potential for persistent economic damage from the crisis,” the IMF said in its report.

Meanwhile, Canada is expected to see a much sharper recovery with the IMF seeing economic growth of 5%, up from its previous forecast of 3.6%.

Not only does the IMF expect the global economy to bounce back this year but another negative for gold is that it does not expect to see major inflation pressures.

“Baseline projections show a return of inflation to its long-term average as the remaining slack subsides only gradually and commodity-driven base effects fade away,” the analysts said.

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