If you’re ready to buy, now is the time to make the move as new indications that the European Central Bank (ECB) are about to unleash a new onslaught of economic stimulus measures is already sending gold ticking higher.
The ECB President, Christine Lagarde gave forewarning of new stimulus telling reporters yesterday (Thursday) that it was clear the European economies, ravaged by coronavirus, needed additional support to weather the storm of resurging infections. The WHO said this week that Europe was the new epicentre of the pandemic and, with several countries including France and Germany initiating new nationwide lockdowns, economic recovery is once again on the backburner.
Lagarde said, “We have little doubt that circumstances will warrant a recalibration and implementation of monetary policy. The risks surrounding the euro area growth outlook are clearly tilted to the downside. This largely reflects the recent resurgence in COVID-19 infections, the associated intensification of containment measures and a highly uncertain timeline of the pandemic and its implications for economic and financial conditions.
“On the basis of this updated assessment, the Governing Council will recalibrate its instruments, as appropriate, to respond to the unfolding situation and to ensure that financing conditions remain favourable to support the economic recovery and counteract the negative impact of the pandemic on the projected inflation path.”
The ECB president’s remarks were immediately reflected in gold prices which quickly started to show signs of upward momentum. This highlights just how favourable stimulus measures are to gold, and with more certainly on the way, there is little doubt that now is a smart time to begin accumulating gold. Act now.