Lagarde believes that the current financial environment is seriously affected by the COVID-19 epidemic
European Central Bank President Lagarde said at the European Parliament hearing that the current financial environment is tighter than before the outbreak. The euro zone economic activity has contracted unprecedentedly due to the pandemic of the COVID-19 epidemic and the blockade measures to control the spread of the virus. The central bank will use all appropriate tools within the scope of its authorization to prevent economic depression and deflation in the region. It also believes that the measures related to the sub-crisis are short-term, targeted and proportionate. The remarks reflect that if the epidemic situation spreads again, otherwise the European Central Bank will temporarily refrain from moving.
Short-term gold prices may be under pressure
Recently, because the market’s optimistic expectations for economic recovery continue to rise, and the stock market continues to rise, but because the market expects the Fed to continue to implement the dovish monetary policy in this week’s resolution, the slight increase in gold on Monday touched the $1700 mark, and Further higher on Tuesday. Overall, the recent rebound in market optimism has led investors to reduce their net long gold positions, which will put pressure on gold. However, analysts pointed out that the current global economy is more of a rebound than a recovery, and inflation expectations triggered by global massive easing are all factors that support gold.
Z. com Bullion is an affiliate of GMO Financial Holdings, Inc., a Japanese listed group. The risk of loss in leveraged foreign exchange trading & margin trading can be substantial. Visit the company website to read full risk warning. https://bullion.z.com/en/about/legal/risk/
Service relating to Over-the-counter (OTC) Gold Bullion/Silver trading is provided by MOL. OTC Gold/Silver Bullion trading carries a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. OTC Gold/Silver Bullion is not regulated by the Securities and Futures Commission (""SFC"") and therefore trading OTC Gold/Silver Bullion will not be subject to rules or regulations promulgated by the SFC. Before deciding to trade OTC Gold/Silver Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain losses in excess of your deposited fund or even more in extreme circumstances and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading OTC Gold/Silver Bullion, and seek advice from an independent financial advisor if you require.