Gold Price Drops Slightly Following President Trump’s (Overly) Optimistic Coronavirus Outlook

One also has to wonder what will happen if this plan falls apart. After all, this sentiment is all based on early data which may not be completely accurate.
Vaultoro President Trump Coronavirus Gold Price

As President Trump wants to begin relaunching the US economy in the near future, an uneasy period appears for the gold price. The world’s leading precious metal market shows signs of ample volatility following Trump’s announcement.

President Trump has a Plan

It is commendable to see certain nations attempt to kick their economy back into gear. The novel coronavirus has introduced a very troublesome situation in that regard. Most businesses are still unable to open for business, albeit that situation may come to change in the weeks to come.

President Trump expects the US economy to be restarted fairly soon. All of this is based on recent data pertaining to a potential coronavirus treatment. An actual cure is rumored to be up to two years away, but the early data related to this treatment may offer some relief in the short-term.

Returning to normal is direly needed in the United States. The Federal Reserve has introduced multiple major stimulus packages in recent weeks, yet that situation cannot be sustained forever. Something will need to change sooner rather than later.

It would appear that the message by President Trump is affecting traditional markets in a positive manner. Global financial markets are rebounding strongly, albeit it remains to be seen how long this momentum will last exactly. Restarting the US economy will pose its own set of challenges, 

One also has to wonder what will happen if this plan falls apart. After all, this sentiment is all based on early data which may not be completely accurate. In the US, the coronavirus death toll is increasing rapidly as of late, further making people wonder how viable President Trump’s plan really is.

Negative Gold Price Sentiment

As is somewhat to be expected, this positive global financial market sentiment has the opposite effect on precious metals. Gold prices are already down across the board by nearly 2%, with more losses likely to follow in the very near future. 

Gold Price Drops Slightly Following President Trump's (Overly) Optimistic Coronavirus Outlook 1

Assuming investors are celebrating ahead of time, this negative momentum may not remain in place for too long. Gold recently hit a seven-year high again, albeit some of those gains have now been wiped out. 

Given how prominent gold has been as of late, it seems unlikely that any major shift in value will occur. It is still one of the best assets to have in one’s investment portfolio, especially when being risk-averse. Stocks, bonds, and treasuries pose major risks to investors right now, as no one knows what the future will hold, both in the short and long term.

As the stimulus checks are coming in across the United States, it will be interesting to see how people spend this “extra wealth”. Some will go out shopping for expensive items, whereas others may rethink their investment portfolio accordingly. 

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