June Gold News 2020

The United States Federal Reserve Board (FRB) has published the results of its supervisory-run Dodd-Frank Act Stress Test for the United States’ largest banks.

As a result, a number of restrictions have been placed on US banks to try and ensure they have the capital to survive the current financial crisis.

In the continuing effort to try and minimise the economic impact of Covid-19 on the global economy, many nations are increasing national debt to pump liquidity into struggling markets.

While these measures are understandable, they have raised fears for many analysts of a potentially catastrophic debt default to come in the next few years.

The price of gold yesterday hit its highest level in US Dollars since October 2012, peaking at $1,779 per ounce late morning, with safe haven demand for both physical gold and ETFs keeping the precious metal price high.

The IMF is today warning that those investing as part of the latest stock market rally might bit hit hardest if central bank stimulus slows or stops, with the National Australia Bank concerned about the true reality of economic recovery.

With the UK government spending billions to try and mitigate the economic damage of Covid-19, many analysts are beginning to question where the money to pay for this is going to come from.

Chancellor Rishi Sunak is appraising his options to ease the effects of the coronavirus lockdown and claw back some of the £48.7bn borrowed by the government.

The tech-heavy Nasdaq stock exchange set a new record high yesterday, with firms like Amazon and Apple leading the charge of investor backing.

While the news is a welcome positive in a period of extreme financial uncertainty, demand for safe havens is still high, and the Nasdaq stands alone as a positive while the S&P 500 and Dow Jones continue to struggle.

Undeterred by the global trade slump from Covid-19, stock markets have remained generally buoyant since crashing in March, defying expectations and contrary to warnings on the state of the global economy.

A survey released by Bank of America Merrill Lynch (BoAML) however found that a record 78% of global fund managers believe the stock markets are ‘overvalued’.

The Bank of England's Monetary Policy Committee (MPC) has announced that it will use further bond buying to support the UK economy through the current coronavirus crisis.

This latest round of quantitative easing will pump a further £100bn into the economy and raises the Bank’s total asset purchase programme to £745bn since 2008.

April has seen the worst ever recorded fall in GDP for the UK, in painful evidence of the economic damage being done to the country by the outbreak of Covid-19.

Last week's Office for National Statistics (ONS) figures, showed the nation's Gross Domestic Product (GDP) shrank by a massive 20.4% in April.

There were fresh falls on the London stock market trading early on Monday, followed by another bounce back, in signs of another volatile week to come for stocks.

Oil giant BP was one of the worst affected as it announced more measures to combat the continuing impact of Covid-19 on its business.

Analysts at fund management firm Incrementum AG believe that gold is on course for a 10-year bull run that could see it climb to almost $5,000 per troy ounce within the next 10 years.

The company released the 2020 edition of its respected “In Gold We Trust” report and made its case for both gold and silver to see significant price rises across the next decade.

Fears of a second wave of Covid-19 have caused four days of successive falls in UK stock markets.

The National Bureau of Economic Research in America officially designated the country in recession on Tuesday, marking the end of 10 years of economic expansion for the US

The World Bank has made further dire predictions for the global economy in 2020 and beyond, in a newly published report.

The World Bank Group, which works towards sustainable solutions to reduce poverty in developing countries, believes Covid-19 will plunge the world into the worst recession since World War II.

As the global economy enters the first months of what is expected to be one of the worst recessions in history, central banks around the world are showing increased interest in gold.

Like private investors, prompted by the current economic crisis, central banks and financial institutions are turning to gold in order to safeguard national wealth.

Precious metal demand has grown to record levels in the past few months, as investors turn to gold and silver for a safe haven to protect their wealth.

This had led to a unique situation for many mints and refiners, with demand booming and a challenging supply situation.

Around the world passenger airline industries have been amongst the worst hit businesses from the current Coronavirus crisis. With their planes grounded, some of the largest airlines are facing collapse or require government bailouts in order to keep flying.