Since the beginning of the current 2020, the value of the yellow precious metal in euros has already been able to grow by + 10%, and according to the results of last 2019, the gold yield amounted to + 22%. The main factors behind such a rapid increase in the price of gold in the European currency were the coronavirus epidemic in China, as well as the depreciation of the euro against the US dollar. Many analysts believe that Central Banks will soon start printing money again (“quantitative stimulus”) in order to prevent an economic collapse.
On Wednesday, the minutes of the Fed meeting were published on January 28-29, 2020. It refers to the coronavirus epidemic in China eight times. In this regard, it is emphasized that investors have lost interest in risky operations. There is a slight decline in the stock markets, and the US dollar is showing appreciation.
According to the Fed, “the epidemic in China carries not only an increased risk of further casualties, but also adversely affect the global economy as a whole. It is necessary to continue to closely monitor the situation in China. ”
Market data from the US show positive signals. Orders in the construction industry in January increased by + 9.2% compared to December 2019.