Bundesbank President and hence ECB board member Jens Weidmann in an interview with a German newspaper.
- We expect Germany's debt burden during the pandemic to be smaller than during the 2008 financial crisis
- says he doesn't expect second coronavirus wave to inflict more economic damage than first wave
- German government's emergency fiscal measures must be terminated once crisis unleashed by the pandemic is over
- says 2021 general election in Germany should play no role in the decision to end or extend economic rescue measures
- governments should not expect central banks to keep interest rates low forever
- if price outlook requires it, there must be a turning point in terms of interest rates in euro zone
- price pressures in euro zone are expected to remain subdued in coming years
- a shift in interest rate policy can take some time
- governments should prepare for interest hikes and not pretend that their debt burden is easy to service
- ECB will not take into consideration public debt servicing costs if price stability requires higher interest rates
- economic outlook ultimately depends on how covid infections develop after lockdown
Further Development
Analyzing the current trading chart of Gold, I found that the price reached our first upward target from yesterday at the price of $1,895 and $1,905.
Key Levels:
Resistance: $1,905
Support levels: $1,885 and $1,905
