Low Interest Rates Will Stay Long – And Support The Gold Price – Columns

The decisions of the European Central Bank are always heeded, as they also show where the gold price is going.

The ECB has confirmed further expansionary steps in its recent council meeting. The PEPP program will be increased by 500 billion euros to 1,850 billion euros. PEPP stands for Pandemic Emergency Purchase Program, which means the purchase program for bonds from public and private borrowers. Originally estimated at 750 billion euros, the amount was increased several times.

The program will run until at least the end of June 2021 or should the critical Covid 19 period last longer, and beyond. The demand for government bonds is secured by the PEPP program. In particular, the southern eurozone countries, which have been hard hit by the pandemic, should receive help.

The level of inflation was and is always important for the ECB. The inflation target of just under two percent has not yet been achieved. An inflation rate of 1.0 percent is calculated for 2021, 1.1 percent for 2022 and 1.4 percent for 2024. An above-average economic recovery is expected for the coming year. These predicted inflation numbers could turn out to be somewhat higher as a result of this and the further increase in the money supply. In any case, the low interest rates will not change for a long time, which in turn will strengthen the gold price.

This in turn also strengthens gold companies such as Aztec Minerals or Fiore Gold.

Aztec Minerals – – operates the Cervantes gold-silver project in mining-friendly Sonora, Mexico, as well as the historic Tombstone gold project, which also contains silver, zinc, lead and copper.

Fiore gold – – Produces more gold each year at its Pan mine in Nevada. Fiore Gold’s second nearby project is the Gold Rock Gold Project. The feasibility study is expected in mid-2021.

Current company information and press releases from Fiore Gold (- -).

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