The US expects to borrow $3 trillion or 14% of the nominal gross domestic product (GDP) during the second quarter to bankroll the federal response to the coronavirus pandemic, as noted by Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco Pension Return Portfolio Thursday.
The Treasury Department said it expects to borrow another $677 billion between July and September, according to NPR.org.
The massive borrowing will likely boost fiscal deficit and bode well for gold, a safe haven and an inflation hedge. At press time, the yellow metal is trading around $1,700, representing a 12% year-to-date gain. Prices clocked a 7.5-year high of $$1,747 in March.
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