Gold advances after the IMF predicts global contraction

The IMF forecast a 1.3 percent drop in the world economy, compared with the 0.5 percent expansion estimated in January

The IMF forecast a 1.3 percent drop in the world economy, compared with the 0.5 percent expansion estimated in January

Gold gained for a second day in Asia as investors sought a safe haven after the International Monetary Fund projected that the global economy will contract this year. The IMF forecast a 1.3 percent drop in the world economy, compared with the 0.5 percent expansion estimated in January. Bullion rose as much as 0.6 percent. IMF Chief Economist Olivier Blanchard said at a briefing in Washington that while a recovery will start early next year, a “return to normal” will take much longer. “This is not the time for complacency,” Blanchard said in a statement that accompanied the fund’s semi-annual World Economic Outlook. Gold is trading at $893 as of 9:18am, London Time. Gold’s Pool-Position is 30% Long, meaning that most Finotec traders are Selling the precious metal.