Trump Administration Gives In Stimulus To Combat Gold Price Fluctuations
Gold might be bullish again as the US has taken some measures to cushion the economy against the onslaught of the coronavirus outbreak. The additional stimulus has halted a trend of selling precious metals for cash, although a strong dollar capped gains too.
According to market analysts, indeed, steps taken by the US Central Bank are helping support liquidity that is in turn, helping the metal. People were resorting to selling their possessions in gold in search of cash. There is a growing fear over liquidity crunch as the virus is sucking dry the financial and commodity market movements.
But the U.S. Federal Reserve has reassured the media that it would reinstate a funding facility used during the 2008 financial crisis to get credit directly to businesses and households to investors’ minds to ease.
However, as the dollar gained its strength, the cost of gold has again got up, crushing the hopes of buyers to purchase the precious metal at a lower rate, for the time being.
Meanwhile, waiting for the right opportunity, Mr. Donald Trump has made a significant political move as he announces the input that would give a ‘much-needed’ stimulus to the rocky American economy. His administration is now pursuing a $1 trillion stimulus package that could deliver $1,000 checks to Americans within two weeks to cushion the economy.
According to market analysts, indeed, steps taken by the US Central Bank are helping support liquidity that is in turn, helping the metal. People were resorting to selling their possessions in gold in search of cash. There is a growing fear over liquidity crunch as the virus is sucking dry the financial and commodity market movements.
But the U.S. Federal Reserve has reassured the media that it would reinstate a funding facility used during the 2008 financial crisis to get credit directly to businesses and households to investors’ minds to ease.
However, as the dollar gained its strength, the cost of gold has again got up, crushing the hopes of buyers to purchase the precious metal at a lower rate, for the time being.
Meanwhile, waiting for the right opportunity, Mr. Donald Trump has made a significant political move as he announces the input that would give a ‘much-needed’ stimulus to the rocky American economy. His administration is now pursuing a $1 trillion stimulus package that could deliver $1,000 checks to Americans within two weeks to cushion the economy.
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