Gold Prices Steady Despite Increased Coronavirus Stimulus Hopes

Gold prices have been on a steady upward trend lately, with some analysts believing that the recent gold rally is directly related to the Federal Reserve’s recent emphasis on the Coronavirus Stimulus Plan. And yes, that is correct.

Why did gold prices go up? It can be attributed to several factors, including the recent economic slowdown in the U.S., a weakness that has pushed many economic indicators well below what is typically considered “full employment.” The Federal Reserve has had to use inflation to curb spending by the private sector, which has forced the Fed to pump money into the economy by creating trillions of dollars in new money.

This is largely due to recent world events, which have caused major upheaval in the Middle East and other regions around the globe. As a result, oil prices are at an all-time high, and because of this, the prices of other commodities have skyrocketed, creating a nearly insurmountable inflationary situation that has created new demands for raw materials.

Given these circumstances, gold prices have risen steadily, leading many to believe that the Fed may consider quantitative easing soon. Indeed, the Federal Reserve, on its website, says that the Stimulus Plan is meant to keep rates at a low level that will help keep inflation under control. But then again, a “low” inflation rate may not be so low anymore.

So, what has gold prices done lately? Well, it seems that everyone wants to invest in precious metals these days. But why?

First of all, the stock market crashes, corporate mergers go through, the recession rages on, and it seems that history repeats itself over again. Butthen, there are all those other precious metals that people are talking about. So, what can gold do for us?

The answer is very simple, at least when it comes to economic condition. It holds true that a strong dollar has always been a strong financial indicator, which means that a weakened dollar will generally lead to higher gold prices.

But then again, why hasn’t Coronavirus Stimulus Plan turned out the way its promoters anticipated? The very first question one should ask themselves is “Why hasn’t Coronavirus Stimulus Plan worked?” The answer is very simple: Governments have never before attempted to put a health care plan in place that covers all the uninsured, as is necessary to help reduce the costs of insuring all the uninsured.

Since there is no current health insurance policies in place to pay for all the uninsured, it means that all of the insured must be taken care of either through government programs or private coverage. It means that the uninsured would be left without insurance, which will lead to a tremendous spike in prices, like we have seen in the health insurance industry in the past.

And as far as Coronavirus Stimulus Plan goes, it doesn’t seem to be as successful as its proponents believe. And that is not only because of the financial concerns, but also because the plans may not even be able to cover all the uninsured. In fact, according to a report from the Government Accountability Office, the financial impact of the Coronavirus Stimulus Plan might be greater than expected.

What else can gold prices do for us? Well, in my opinion, if you’re going to invest in a gold bullion investment, it might be a good idea to get started off with gold coins. Simply put, gold is extremely volatile, but gold coins can be counted on to hold their value.

In fact, gold prices have already peaked, and it looks like it won’t be returning any time soon. So, what are you waiting for?