European Central Bank says global economic outlook is deteriorating

With cases remaining high and vaccine roll outs stalled across the bloc due to supply issues, the European Central Bank governing council member Gabriel Makhlouf warned yesterday (Thursday) that the near term global economic outlook is deteriorating rather than improving.

Makhlouf said that global economies continue to need fiscal support, signalling that policymakers can’t afford to dial back on stimulus efforts or reinstate tighter fiscal policies.  Speaking at an online event, Makhlouf said, “In the near term, the outlook has deteriorated and become more uncertain. The increased vulnerabilities have clear messages. For authorities, now is not the time to unwind either fiscal or monetary support.”

Makhlouf’s dire assessment comes just days after the World Health Organisation warned that only global vaccine equality would bring an end to the pandemic and allow life to return to normal. The WHO says COVID-19 will remain in circulation until the world’s poorest nations can also vaccinate their populations, something that requires vaccines to be more widely distributed globally.

The remarks from both organisations are very bullish for gold; the precious metal is a long time safe haven asset and has only reinforced this during the pandemic. If you received our 2021 gold forecast last month, you’ll already know that every major bank and investment expert expects the slow pace of economic recovery and continued fiscal stimulus to heavily favour gold throughout the course of the year and push it to record highs.

With a window of opportunity open to buy now, with gold hovering around £1,320 ($1,825) now is the time to buy.

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