Every war or political turmoil will generally push up the price of gold, which is the best interpretation of gold as an important hedging tool. So, is war bound to trigger a rise in gold prices? Let's analyze it.
The impact of war on the trend of gold price: before the fact becomes reality, the expectation dominates the price fluctuation: the wars after World War II are all local wars, and the impact on the world is limited in a certain range, so the war premium often lasts for a short time. We have two categories. One is the sudden outbreak of war. Because it is generally beyond people's expectation, the impact on gold price is also explosive. The gold price tends to go out of the trend of rapid rise and then rapid decline. For example, if Iraq suddenly invades Kuwait, the gold price rises sharply in a short period of time.
The second is the outbreak of war as expected. Before the war really broke out, the gold price had already followed the expectation, and the war premium had been reflected in the price rise. For example, in the Gulf War, the outcome of the war between the United States and Iraq was very clear. Therefore, in fact, the outbreak of the war announced the end of its role in promoting gold prices. The above is gold as a safe haven asset. In the past, risk aversion will rise. Take last year's blow, and I believe you have seen the rise of gold on Friday. The recent global attention of the US, UK and France's attack on Syria has a great geopolitical impact. Normally speaking, gold should be supported by the blow of last year. On Friday, I believe you can see the rise of gold Yes, the recent US, British and French attacks on Syria have had a great geopolitical impact. Normally speaking, gold should be strengthened under the support of the world. However, it fell back quickly after the opening of the early trading, which means that the market has basically digested the risk aversion sentiment. Today, we need to focus on the impact of the monthly retail sales rate of the United States in March. Although risk aversion can make us judge the trend of gold roughly, erudite scholars do not want war. The sky in Syria is not blue, and the mountains are not green. It is an exercise battlefield for angry nuclear powers.
So the war will trigger the rise of gold, so we should have a good understanding of the world's events and some policy changes, so that we can do a good job in gold investment. Well, the above is the analysis of Xiaobian today. I hope you can learn why the war will trigger the rise of gold price.
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