The US economy is deteriorating at an alarming rate

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This morning, it was reported that more than 6.6 million Americans had applied for unemployment last week, bringing the total to more than 17 million since the start of the COVID-19 pandemic. The unemployment rate in the United States could reach 13%, according to some economists, including former Fed presidents, Janet Yellen.


The Federal Reserve acted quickly to help those in need. Today, they announced new additional loan programs that will inject additional $ 2.3 trillion in economic relief. This includes a $ 600 billion Main Street loan program to help small and medium-sized businesses recover.
“We are progressing at an alarming rate, going from a level of unemployment that has been low for 50 years to levels that are likely to be very high, albeit temporary. We are all affected, but the burden weighs most heavily on those who are least able to carry them. Federal Reserve Chairman Jerome Powell said in an interview today.
According to the Washington Post, “the Fed’s latest actions go even further than what the central bank did during the Great Recession. The Fed directly buys corporate and state debt, a level of support it has never tried before. There are fears that some businesses and households will go bankrupt during the pandemic because they won’t be able to borrow money on time, but the Fed has taken important and unprecedented steps to maintain so much credit as possible. “
US stocks, gold and silver were traded higher today as market participants ran both on risk and on the safe haven asset class.
The Dow Jones gained 285 points today, bringing the indexx to 29,719.37. The S&P 500 gained 1.45% in trading and the NASDAQ composite gained 0.78%.
At 4:47 p.m. EST, the most active gold futures contract is currently trading at $ 53.70 and is set at $ 1,738.20. This is a net gain of almost 3% on the day. Spot gold prices lag behind the futures, creating a wider spread between the two. Gold futures reached a new all-time high this year as they briefly touched $ 1,754.50 before declining, taking gold to new heights for over seven years.
Silver futures are also trading considerably higher today, with net gains of just over 4%. Currently, silver futures are up $ 0.61 to $ 15.81.
With the coronavirus affecting such a large segment of the world’s population as we celebrate Passover and Easter, we wish the golden forecast that we can all stay focused on the light at the end of the tunnel, knowing that we will endure and overcome this global pandemic. I wish you all to stay healthy, physically, mentally and financially.
For those who would like more information, just use this link.
Wishing you as always good trading,

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for loss and / or damage resulting from the use of this publication.

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