The spot price of gold has hit new multi year highs this morning, with the price of the precious metal reaching as high as $1795.94 per ounce while the August futures contract has moved as high as $1809.70 per ounce. The move comes following comments made by the Chief of the Atlanta Federal Reserve, Raphael Bostic, to that of the Financial Times.
Commenting on the state of the current economy, Bostic indicated that there are signs the US economic recovery is “levelling off.” The culprit of which is the endlessly rising cases of coronavirus in the country, prompting many regions to reinstate lockdown procedures to slow the spread. The “levelling off” referenced is said to be in the form of both mobility and business openings.
Commenting to the Financial Times, Bostic stated, “There are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise.” Further, he hinted at further stimulus coming from the Federal Reserve, saying, “When the relief was passed initially, there was a thought about how long this was going to last, and as more information has come in, there’s reason to suggest this is going to last longer than that, which means it’s only natural, given that possibility, to start thinking about what the next relief package should look like.”
Unsurprisingly, the result of his comments is the surge in the price of gold as investors look to protect themselves from further inflation as a result of additional potential money printing.
Information for this briefing was found via TradingView and The Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
