First Vaccines Arriving
With Canada receiving its first doses of vaccines, many are wondering what this means. Is this a sign that things will go back to normal? And if so, then when? Brampton is going to have to wait, but Toronto and Oshawa are set to get the first doses. And as the rest of the world plans to get their population vaccinated by year-end 2021, what will it mean for gold?
Will Vaccines Affect Gold?
Gold thrives in a struggling economy. Seen as a safe haven, when the economy is in a recession, gold will often rise. But if the vaccines are distributed ahead of time, that could hurt gold. While vaccines won't solve the economic issues that Covid-19 create, it could help to reduce further stress on the economy. With an unemployment rate of 8.5%, there is no quick fix to that. It's a long process that will take years to get back to normal, which can help push gold higher.
$900 Billion USD Relief Bill
In the United States, the government recently passed a Covid-19 relief bill of $900 billion. This bill includes funding to avoid a government shutdown, instant relief for unemployed Americans, and more. Despite the celebrations by the senate, many Americans are upset at this low amount, which is almost half the previous stimulus amount. With such a small amount, many will run out of money in less than a week. This amount is unlikely to help the economy, and printing such a large amount may end up having the opposite effect. And when it does, gold is sure to rise.
So What Will Happen With Gold?
But even with the stimulus package, there are many uncertainties surrounding the vaccine. From issues regarding transportation and manufacturing, it will be a while before we're able to get a majority of the population vaccinated. And once we do, we'll have to re-open in stages, not as one big flock. Over the coming months, we'll see gold swing both high and low as news comes out regarding the vaccine. And while it may rise temporarily, it is expected to fall over the next 2 years. You can always keep track of gold prices here and what we pay, and see when the best time to sell is!