Gold peaked at a new daily high yesterday (Tuesday), following comments made by the Federal Reserve to the US Senate Banking Committee. The precious metal hit $1750 thanks to remarks from Federal Reserve Chairman Powell, who testified that the Fed couldn’t take anything off the table when it comes to helping the economy recover from the huge toll wreaked by the coronavirus pandemic.
As Powell continued his testimony, gold climbed higher and higher, reaching a double digit increase at one point. He warned that more action could be needed from Congress to help the US economy get back on its feet and signalled that we likely haven’t seen the end of quantitative easing measures, saying “We are committed to using our full range of tools to support the economy in this challenging time even as we recognize that these actions are only a part of a broader public-sector response.”
With all signs that more stimulus packages and measures are to come – which invariably favour gold – buy now to be in prime position.