Will gold hold above $1,700? [Video]
|Gold prices rose on Tuesday after the U.S Federal Reserve announced a new round of quantitative easing measures to revive the country's economy.
The U.S central bank said it will buy up to $750 billion of corporate bonds and exchange-traded funds. The Bank of Japan this week announced a similar plan to expand its quantitative easing program by $1 trillion.
There is growing agreement the Federal Reserve and other central banks will continue to deploy more firepower to support their economies. This will come as their governments’ debt obligations continue to bulge – creating a very serious problem furher down the road.
Gold has traded in a range in the past month, holding this year’s gains after the Covid-19 pandemic triggered an unprecedented wave of stimulus, bolstering the safe-haven’s appeal.
As we head into the second half of the year, the price action across the precious metals complex continues to resemble the trend last seen during the Global Finance Crisis.
If history is anything to go by, then the stage is almost certainty set for Gold prices to soar further and reach fresh 2020 highs in the months ahead.
Where are prices heading next? Watch The Gold & Silver Club Commodity Report now with Phil Carr for the latest price forecasts and predictions:
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