Gold regains the momentum as Fed announces ‘unlimited QE’ and Congress stalls on $2 trillion relief bill
Gold regains the momentum as Fed announces ‘unlimited QE’ and Congress stalls on $2 trillion relief billfor USA Gold
Gold regained upside momentum in early U.S. trading as authorities globally scrambled to contain the virus pandemic with draconian stay-at-home measures, stark warnings, massive bailout packages and unprecedented monetary stimulus. The Federal Reserve, according to a Bloomberg report this morning, announced it will unleash “unlimited QE” – essentially throwing everything including the kitchen sink at the developing economic shutdown. Also fueling gold’s upside, the U.S. Congress put a hold on a $2 trillion national relief bill as talks stalled between Democrats and Republicans – a failure not likely to play well in financial markets. Gold is up $20 at $1519. Silver is up 23¢ at $12.86.
Sharps Pixley’s Ross Norman offered a few words of wisdom and encouragement over the weekend we thought worth passing along. “By my estimation,” he says, “gold is weighing up the longer term outlook for the US dollar, equities and perhaps most importantly treasuries – with half an eye on inflation. Fear is rarely a good motivation for buying gold as it seems we seem to become inured to the idea of being scared quite quickly – we get bored with it – so in our household Mrs Norman has simply banned discussions about CoronaVirus… and quite right too. Worry about what you can change. If it doesn’t sound too pompous, I see gold as the ‘grown up’ in the ‘financial’ room. The weather is inclement and has turned against us … but soon enough the sun will come out again.”