The current week are nicely folded for gold buyers. Only the first two trading days XAUUSD increased by 5%, rebounding from $ 1500 to $ 1577 per ounce. Support around the precious metals market continues to weakening of the dollar against the backdrop of the launch of new measures to stimulate the US economy by the Fed.
On the eve of the US regulator said that the purchase of Treasury bonds and mortgage-backed securities, which were announced a week ago, in fact become unlimited. According to the Federal Reserve said this week it will acquire Treasury bonds worth $ 375 billion., And mortgage-backed securities worth $ 250 billion. In the appendage to an unlimited volume of buying Treasury bonds, US regulator also prepare a new program lending companies and households. Previously, the new monetary incentives also said the ECB announced its own quantitative easing program in the amount of 750 billion. Euro. Despite the fact that such measures are aimed at mitigating the economic impact of a pandemic coronavirus infection, they have one significant side effect - inflation. Just one of the best means of combating it has always been to invest in assets that are not susceptible to inflationary pressures. First of all, we are talking about gold.
In addition to the weakness of the dollar, as well as the risk of inflation, gold support is provided by its ability to be a safe haven for any increase in economic uncertainty. It is worth noting that the situation in the financial markets today remains extremely tense due to the continued spread of the epidemic coronavirus. According to the latest Research Center at Johns Hopkins total number of cases in the world has reached 382 108 people, with 16574 deaths. Trying to contain the increase in the number of deaths in the United States has limited the movement of citizens within the country, while Italy and altogether banned all domestic travel. Disturbing news is coming from China, where once again been an increase in the number of cases, however, as noted in the official statistics, the majority of these cases are introduced by the outside. Taking this into account,
XAUUSD BuyLimit 1550 TP 1680 SL 1520
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