IMF President said the global economy is in a cold winter, Gold demand continues to increase

IMF President said the global economy is in a cold winter

Georgieva, president of the International Monetary Fund (IMF), said that the new coronavirus epidemic has plunged the global economy into recession, and countries around the world must use very large resources to deal with the economic impact of the epidemic. In addition, it is more worried about emerging markets and developing countries. Due to the continuous loss of capital, it is expected that the countries concerned will need more than US $ 2.5 trillion in financial resources to recover from the impact of the epidemic. In the future, the IMF will focus on measures that can be completed quickly, including doubling the size of emergency loans to US $ 100 billion and establishing a new short-term liquidity tool.

Gold demand continues to increase

Last Friday, due to the largest fiscal stimulus in the history of the United States and the Bank of Canada ’s third month ’s cut in target interest rates to the lowest level in 10 years, gold fell by $ 20. Nonetheless, gold still recorded its biggest weekly increase since 2008, as market worries about the epidemic impacting the US economy have intensified. Last week, the gold ETF holdings increased by more than 55 tons, continuing to reach a new high since October 2016, this also highlights the continued increase in market demand for gold. This week, we will continue to pay attention to the progress of the US epidemic. At the same time, we need to continue to pay attention to the number of unemployment claims and the ISM manufacturing PMI data.

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