Gold wants to bottom fishing, the big fall you are looking forward to has come.International TodaySpot goldFrom the opening to the current decline25Dollar, today's plunge can make the bears happy, all shouting that gold has peaked,Federal Reserve hikes interest ratesExpectations are growing, and gold is falling2000Below the dollar?
To be honest, it's a bit ridiculous because these people don't even understand what the main factor behind this wave of gold's decline is.
So why did this round of gold decline, and can it continue to rise to new highs in the future? Let me first explain my point of view. This round of gold decline is mainly due to news, but it has nothing to do with the Federal Reserve.The United States passed a $95 billion bill over the weekend to provide $60 billion in aid to Ukraine and $26 billion to Israel.This signal was seen by gold bears as a clarion call for dollar hegemony to counterattack. We told you before that war is the continuation of politics, and economics is the foundation of politics.The rise of gold has little to do with whether there is a war, but the direction and outcome of the war will definitely affect asset prices. In other words, the rise and fall of gold does not really care whether there is a war, but predicts the outcome of the war.For example, when the United States launched the Iraq War, gold not only did not rise, but also fell. So can Ukraine really turn the tables on the battlefield after accepting $60 billion in aid?In my opinion, the answer is no, because the 60 billion dollars, the vast majority of the military-industrial complex of the United States, is to stay in the United States to replenish the weapons inventory, Ozawa can get the hands of 6 billion are considered qualified, the real use of funds on the battlefield 1 billion are beyond expectations.Therefore, this amount of money had little impact on the battlefield situation, so it would not affect the price of gold in the end. Again, the trend of gold is a prediction of the outcome of a war. Most of the people who are bearish on gold are believers in the United States.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
