It has been another mixed bag of news for the financial sector. Despite a positive outlook by the Federal Reserve, there are no concrete developments to improve the situation. Furthermore, the lack of further stimulus is rather worrisome.
No Real Solutions by the Federal Reserve
Not too many will be surprised to learn the Federal Reserve remains optimistic. Even though COVID-19 is still wreaking havoc, the bank expects things to improve. An optimistic outlook, although one that will not necessarily come true without actual solutions. Unfortunately, those solutions have not been provided as of yet.
More specifically, there are still plenty of questions regarding a new stimulus check. Initially announced weeks ago, there is still no indication of more checks being sent out. This leaves households hanging out to try. Considering the current rate of US unemployment, and the COVID-19 pandemic still not being under control, the outlook remains very bleak.
As is usually the case, the Federal Reserve did not offer any excitement. Other than painting a favorable picture, there are no tangible solutions in sight. It was anything but an inspirational report, and one that leaves a lot of investors disappointed.
While it is difficult for any central bank to offer any hope, painting a positive picture without solutions is not the best option either. More specifically, there are no fundamental changes to look forward to. It seems to indicate the US Dollar will continue to weaken further, whereas gold and other precious metals will rally.
Gold Rally Comes to a Halt Again
In the past few days, there was some genuine excitement for gold and silver. As far as the world’s leading precious metal is concerned, the positive momentum seems to be eroding once again. Despite surpassing $1,960 an ounce not too long ago, the price dropped to nearly $1,931 this week. A strong bounce will be needed to improve the market sentiment.
All things considered, gold remains a safe haven asset. Cash, and in particular the US Dollar, is not looking all that appealing right now. When even the leading central bank has no tangible plan of action, one has to wonder what the future will offer. For now, there is no reason to be excited, and all the more reason to keep diversifying through gold and cryptocurrencies.