US M1 money supply is up a staggering 70% year-on-year

Omkar Godbole FXStreet Contributor

The US M1 money supply, which includes physical currency and coin, demand deposits, travelers' checks, other checkable deposits, and negotiable order of withdrawal (NOW) accounts, has risen by a staggering 70% over the past 12 months, according to data tweeted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds.

The Federal Reserve has injected massive liquidity into the economy to counter the coronavirus-induced economic slowdown.

The massive liquidity injections have strengthened gold's long-term bull case. The scarce asset rose to a record high of $2,075 in August and was last seen changing hands near $1,847 per ounce.

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Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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