Lagarde believes that the current financial environment is seriously affected by the COVID-19 epidemic
European Central Bank President Lagarde said at the European Parliament hearing that the current financial environment is tighter than before the outbreak. The euro zone economic activity has contracted unprecedentedly due to the pandemic of the COVID-19 epidemic and the blockade measures to control the spread of the virus. The central bank will use all appropriate tools within the scope of its authorization to prevent economic depression and deflation in the region. It also believes that the measures related to the sub-crisis are short-term, targeted and proportionate. The remarks reflect that if the epidemic situation spreads again, otherwise the European Central Bank will temporarily refrain from moving.
Short-term gold prices may be under pressure
Recently, because the market’s optimistic expectations for economic recovery continue to rise, and the stock market continues to rise, but because the market expects the Fed to continue to implement the dovish monetary policy in this week’s resolution, the slight increase in gold on Monday touched the $1700 mark, and Further higher on Tuesday. Overall, the recent rebound in market optimism has led investors to reduce their net long gold positions, which will put pressure on gold. However, analysts pointed out that the current global economy is more of a rebound than a recovery, and inflation expectations triggered by global massive easing are all factors that support gold.
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