The Fed will use all tools to stabilize market confidence
The minutes of the Federal Reserve Board ’s public meeting on emergency interest rates in the middle of last month showed that the members of the Bureau believed that the impact of the new coronavirus epidemic has greatly deteriorated the economic prospects of the United States and constituted a huge uncertainty for the future. Therefore, the Bureau must use all tools to deal with it in the future. As for interest rates, the Bureau will be anchored at the bottom level for a longer period of time. Obviously, with the prospects of the new coronavirus epidemic unsettled, the United States interest rate negotiation can only try to stabilize market confidence, and it is difficult to give the market more inspiration for the time being.
the huge amount of loose material has buried hidden dangers for soaring inflation
The global stock market rose sharply on Monday due to the slowdown in the growth of new cases in several of the most severe areas in the world. However, investors have been prepared to buy gold in response to more uncertainties in the future, so the price of gold has risen sharply. However, countries will still introduce more stimulus measures to support the economy, while money managers have also slightly reduced the net long position of gold. However, analysts pointed out that continued easing measures in various countries may become a fuse that triggers a surge in market inflation in the future, and gold as the best tool to hedge inflation will significantly benefit.
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.