We will now read what is happening in real time, but then we will go back to what happened and explained, on February 25, 2023.
It is important to understand, first, several points about gold:
The crisis makes us take refuge in gold.
Gold is moved mainly by real interest rates, or rather, by long-term expectations of real interest rates. Real interest is what you get from a bond coupon after discounting inflation.
The market is a long-term expectations discount mechanism. So, what you care about is long-term real rates. That is, the difference between the inflation that we are expecting in the long term and the interest rates that we can estimate in the long term.
Written which, what we will do is say that if we look at the following graph, the arrow on it, is where the gold was, when we were talking about it on February 25. We therefore hit the zone that was being (had not yet happened) the zone of the end of the short-term fall and bullish turn.
We remember the phrase with which I wrote the article, called: “Commodities, next station”, because it is in my opinion; stations one after the other in the final movement of continuing to climb.
The station that corresponds now is to check if the 2000USD that has already touched, will be surpassed in the short term or now it is a strong resistance.
Be that as it may, and to continue (after remembering to read the article to the end and come back here, at the beginning, to see the first chart again, that once gold has reached 2000USD, its next objective is to rest, but but and assault them for their overcoming.
And now, we return to a day such as February 25, 2023, enjoy reading.
About silver, i will write, later.
COMMODITIES, NEXT STATION
In order not to always load the same topic, always, in relation to crypto assets, today I am going to talk about commodities.
Precious metals have been highly valued by humans for centuries, serving as a store of wealth, a form of currency, and a symbol of status and power. Among these metals, gold and silver stand out as the most coveted and widely used. In recent years, their appeal has only grown stronger, as investors seek safe-haven assets amidst economic and political uncertainty.
The current global landscape is fraught with challenges, from the COVID-19 pandemic to geopolitical tensions and market volatility. In this environment, precious metals have emerged as a favored asset class, offering investors a hedge against inflation, currency devaluation, and other economic risks. Gold and silver, in particular, are seen as valuable assets that hold their worth over time, even in times of crisis.
Gold, the perennial favorite of investors, has a long history of use as a store of value. It is highly sought after for its scarcity, durability, and intrinsic value. Unlike paper currency or other financial instruments, gold is a tangible asset that cannot be easily manipulated or debased. It has proven to be a reliable hedge against inflation and other economic shocks, and is often seen as a safe haven during times of political or economic turmoil.
TA: In the long term, looking at the graph, gold is in areas of previous resistance, in 2011 and 2012. If this area manages to hold on, and does not give in, it could resume the upward path from here.
Silver, while less well-known than gold, also has a strong investment case. It is a highly versatile metal, used in a wide range of industrial applications, including electronics, solar panels, and medical devices. As such, its price is influenced by both industrial demand and investor sentiment. In recent years, silver has gained popularity among investors as a cheaper alternative to gold, with similar characteristics as a store of value and inflation hedge.
TA: Regarding silver, more of the same, after an upward end of the year, the new 2023 has brought setbacks. We can observe in the long term, how it seems to be enclosed in a triangle, with upward perspectives. But… you have to wait.
Looking ahead, the future of precious metals appears bright. While the global economy continues to face significant challenges, the long-term outlook for gold and silver remains positive. Demand for these metals is expected to remain strong, driven by a combination of factors, including rising inflation, increasing geopolitical uncertainty, and a growing appetite for alternative assets.
In conclusion, gold and silver are set to play an increasingly important role in investment portfolios in the years to come. Whether as a hedge against inflation, a safe haven during times of crisis, or a long-term store of value, these precious metals offer investors a range of benefits that are hard to match. As the world becomes more uncertain and volatile, the appeal of gold and silver is likely to only grow stronger.