Gold: What does it mean for the Russia-Ukraine conflict
تم تحديثه
Fundamental View:
After a long six months or more, gold finally broke through the trendline resistance and climbed to the previous high.
Last week, a large number of days of significant trendline resistance erupted at the same time. During the previous two years, the Coronavirus has been a source of concern, and gold prices were supported.
As we have seen in recent months, the US economic data have been perfect, and the Federal Reserve will hike interest rates beginning in April. So, why isn't the price of gold dropping as a result?
This is something that those who follow fundamental analysis have come to grasp by now. Increasing demand for gold as a safe haven is mainly due to the Russia-Ukraine situation, which brought with it the inflation problem is still present, and to the coronavirus problem, which has been supporting the gold price for the past two years.
In general, the rise in the price of gold was expected and expected. The question now is whether or not Russia will attack Ukraine. And what, exactly, will be the outcome? Only China and some countries are supporting Russia in Ukraine issues but the entire European and American community is not.
President Biden and Russian President Vladimir Putin chatted on the phone for more than an hour on Saturday. As predicted, we have not yet received any additional information. America is also posing a threat to Russia.
If Russia attacks Ukraine, the United States will first take will impose tough economic sanctions on the country. As a result, it may have been forced to dig into its vast gold reserves to keep its currency stable. As a result, I'm being extra cautious in that regard. And it will help gold prices to go higher.
On the other hand, oil and gas prices are expected to surge. This would significantly shock inflation expectations in the United States and Europe, resulting in rates rising aggressively and bonds collapsing. As a result, gold is considered a safe refuge.
On a technical level, because gold has broken free of trendline resistance and surged to its previous high, it is now widely accepted that the metal is headed for a long-term buy.
However, even if we study the market technically, we must first determine why gold breached the trend line in the first place; if this problem is resolved, the market will remain in its current form, but it will continue. We must not forget this.
However, as long as the problem is still present, as long as the issue continues to exist, we can put it in bye mode at each breakout session, if necessary. However, what should consider the news.
Technical View:
The present $1853/1845 is identified as trendline support as gold price breaks and stabilizes above the previous trendline resistance.
So, as long as the gold price is above the trendline resistance, gold will be considered an uptrend.
The first target to the upside is the 1870/1875price zone (previous swing high zone). Breaking above $1875 will open the door for the $1900/1915 rice zone.
On the other hand, if the gold price breaks below the trendline support again and below $1845, it may test its trendline support level of $1815/1810 price zone again.
After a long six months or more, gold finally broke through the trendline resistance and climbed to the previous high.
Last week, a large number of days of significant trendline resistance erupted at the same time. During the previous two years, the Coronavirus has been a source of concern, and gold prices were supported.
As we have seen in recent months, the US economic data have been perfect, and the Federal Reserve will hike interest rates beginning in April. So, why isn't the price of gold dropping as a result?
This is something that those who follow fundamental analysis have come to grasp by now. Increasing demand for gold as a safe haven is mainly due to the Russia-Ukraine situation, which brought with it the inflation problem is still present, and to the coronavirus problem, which has been supporting the gold price for the past two years.
In general, the rise in the price of gold was expected and expected. The question now is whether or not Russia will attack Ukraine. And what, exactly, will be the outcome? Only China and some countries are supporting Russia in Ukraine issues but the entire European and American community is not.
President Biden and Russian President Vladimir Putin chatted on the phone for more than an hour on Saturday. As predicted, we have not yet received any additional information. America is also posing a threat to Russia.
If Russia attacks Ukraine, the United States will first take will impose tough economic sanctions on the country. As a result, it may have been forced to dig into its vast gold reserves to keep its currency stable. As a result, I'm being extra cautious in that regard. And it will help gold prices to go higher.
On the other hand, oil and gas prices are expected to surge. This would significantly shock inflation expectations in the United States and Europe, resulting in rates rising aggressively and bonds collapsing. As a result, gold is considered a safe refuge.
On a technical level, because gold has broken free of trendline resistance and surged to its previous high, it is now widely accepted that the metal is headed for a long-term buy.
However, even if we study the market technically, we must first determine why gold breached the trend line in the first place; if this problem is resolved, the market will remain in its current form, but it will continue. We must not forget this.
However, as long as the problem is still present, as long as the issue continues to exist, we can put it in bye mode at each breakout session, if necessary. However, what should consider the news.
Technical View:
The present $1853/1845 is identified as trendline support as gold price breaks and stabilizes above the previous trendline resistance.
So, as long as the gold price is above the trendline resistance, gold will be considered an uptrend.
The first target to the upside is the 1870/1875price zone (previous swing high zone). Breaking above $1875 will open the door for the $1900/1915 rice zone.
On the other hand, if the gold price breaks below the trendline support again and below $1845, it may test its trendline support level of $1815/1810 price zone again.
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