Gold broke through 2040, and the bears disintegrated the truth

Mondo Finance Updated on 2024-02-01

**: Giant Elephant Gold.

Nervousness in the Middle East, tighter Fed tensions, and rising risk aversion in the market

On Monday, the spot market witnessed a high opening and a final close at 2032$88 an ounce, while the spot** is also priced at 178% gain** to 23$2 oz. Tuesday hit a high of 2048$41 ounce, a new high in nearly a week. In the end, ** closed at 2036$83 oz.

Analysts point out that this trend may be driven by safe-haven demand triggered by the escalation of tensions in the Middle East. Others believe that the intensification of the crisis at the US border and the risk of a civil war are driving factors, while others believe that this may be a precursor to the Fed's upcoming interest rate decision.

When the Soviet Union collapsed, should the United States also disintegrate? Another Civil War?

Here's why, the most recent decision of the United States, Biden, voted 5 in favor and 4 against, to send federal law enforcement agencies to the U.S.-Mexico border to dismantle the fence built in Texas during the Trump administration, which was fenced with barbed wire to stop those illegal immigrants from Mexico. This decision has exacerbated the tension between Biden and Texas because Biden interfered in the immigration issue.

The governor of Texas strongly objected, and there was a fierce armed standoff. Not only that, but it sparked a coalition with the governors of 25 other states to oppose Biden's bill on immigration. If the situation is not controlled, it could lead to a new civil war after the American Civil War.

At the same time, the border crisis has become the focus, and Trump's dissatisfaction with the border crisis and his warning of the possibility of a major terrorist attack have pushed the tension to a new climax.

The Federal Reserve continues to wield the magic wand of interest rate adjustment, and invests in the long run

At 3 a.m. on February 1, the Fed will announce its first interest rate decision of the year. According to the Chicago Board of Trade, the Fed maintains the current 525% to 5The probability of a 5% rate unchanged is as high as 969%。The market generally believes that the Fed's accommodative monetary policy is clear and that it is only a matter of time before interest rates are cut, which could attract a lot of money into the market. If the Fed decides not to raise interest rates, this could ease short-term market concerns and potentially end the trend.

This week, it was mainly influenced by comments from the Fed's Waller and Daly, among others, who said that the Fed would not rush to cut interest rates, which temporarily boosted the dollar and US Treasuries. However, from another point of view, the Fed did not say that it would raise interest rates, but only postponed the timing of the rate cut. This suggests that the Fed's monetary tightening actually ended at the end of last year and has yet to be officially announced. If the Fed's interest rate decision reveals any signs of rate cuts, a new round could be ushered in.

Considering the general trend in 2024, now is a good time for investors who are interested in a long-term layout or as a long-term asset allocation. **It is unlikely to return to the level of a year ago, and every opportunity should be seized. For more information, please visit the homepage

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