“The Fed cannot print money”, says Bank of America in view of the reaction of the US Federal Reserve to the corona crisis. It raises the price target for gold to 3000 Dollars. But will gold therefore rise in the short term? As long as inflation does not rise – and currently the velocity of money in circulation is falling due to the lack of payment flows in the corona crisis – gold will probably not shoot through the ceiling (but when inflation finally comes, things will look different!). Stock markets are once again optimistic today for two reasons. The eternal hope for a vaccine and a recovering oil price after Donald Trump threatened Iran with military action. What a coincidence.
On Friday evening the Fed released a statement – in response to developments in the coronavirus issue. The statement reads literally: „The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks […]
The recent drop in gold prices, triggered by the panic over the coronavirus pandemic, proved to be quite short-lived. Since yesterday, the price of gold has seen a sudden rise, and we are officially witnessing […]
Iran crisis? Was there anything? No, that’s over. There was something in the news the last few days, but it wasn’t such a great topic. You could put it that smugly if the capital markets […]