We indicated in our previous article
Here is a picture of the last of what was mentioned in our article:
The majority did not believe us and thought that it was madness, and that what happened to the Silicon Valley Bank was a coincidence and that the infection would not spread, and we said that it is not at all surprising (if it actually happened) the financial and economic crisis that we are talking about to see a rise in gold prices at a very fast pace Very much, and gold does it, and it rises 125 dollars in a week, equivalent to 1250 points, by 6.66% in a week, and nearly 10 percent in less than two weeks, but is this rise healthy and justified?
Gold luster fake or real?
We would like to warn at the outset that the rise of gold at this rapid pace and without building a clear support base and penetrating several resistances in a very short period of time is not considered a healthy rise at all, and the problem is that such a type of rapid and unhealthy rise is that it may fall strongly And perhaps faster than its rise, so it must be warned that the fuel that ignited gold to these prices may run out and run out, and accordingly we may witness a very rapid decline once this fuel runs out.
In fact, we may say that the luster of gold was real and false at the same time. It is real by virtue of the events that took place in the past week, and false by virtue of the fact that the markets did not act on the basis of the presence of strong events, meaning that the Dow Jones and stocks held together somewhat, and the dollar was held together to some extent. And if we take the ratio and proportionality of the movement of the markets in general with the movement of gold, we would find this rise false. It was likely that he would catch his breath from the 1960 levels with a correction of at least 20-30 dollars to approximately 1930 levels and then continue his rise at a later time, but to rise from his bottom on Friday at 1918 to the level of approximately 1990 at a rate of 72 dollars in one day? This is what was not expected to some extent, but the price is the master of the situation, and gold did it and rose, as gold may increase its luster or dim according to the events that may occur in the current week.
Dark swamp of fiery events:
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The amount of data and fiery events in the current week makes it impossible for any analyst or person to predict them, as the global analysts were divided into two sections, an optimistic section that countries and central banks are able to stop the bleeding of the decline in the shares of commercial banks and thus convince investors that they are able to contain the problem, And another team went to the spread of the infection to the major banks, and that this bleeding cannot be stopped, and the Federal Reserve is now at a loss, and any decision it takes will kindle fires on a different front, if it raises the interest rate by 50 points, it will be disastrous for stocks and it will pay The dollar will gain more strength, and if it raises 25 points, the situation will still be disastrous, and if it fixes the interest rate, it will lose face and lose its credibility, but it will have solved part of the problem, especially since the markets are on the verge of an abyss that may be disastrous, and this is what we expect. Stabilizing the interest rate would be the best option for the US Federal Reserve, especially since research says that the collapse may affect about 168 US banks, and that the infection has already begun to spread, as we mentioned earlier, to European banks as well. Credit Suisse is the giant bank, and it is not a bank. Relatively small ones, such as Silicon Valley Bank or the First People’s Bank of America, and we recall that the interest rate decision date for the US Federal Reserve is on Wednesday, March 22, this week.
We will not touch on more other news and its details a lot, as there is the issuance of an arrest warrant for Russian President Putin and also another warrant for the arrest of Trump about his abuse of power and the transfer of sums of money before the elections, the movement of the nuclear missile file of Korea, China’s warnings to the United States of America, and the US Treasury’s announcement of bankruptcy Unfortunately, the activity of the nuclear arsenal in Russia and fiery news may lead the world towards a dark quagmire, and it will take years to create a light to guide it.
Trading in the markets these days is like being in a battle. You need a weapon of knowledge, a stop-loss shield, smart trading ammunition, avoiding the erosion of your account, and a trench to take refuge in when there are powerful bombs and their fragments. And you have to keep your head down, because any stray bullet or shrapnel is enough to uproot him.
If you don’t have all those weapons, advice don’t follow the market and spend a week off. Bulls, bears, whales and sharks are fighting. Stay as far away as possible until this conflict ends.
Technical Analysis :
The above chart shows the daily closest resistance to gold at 1999 and the historical highest value of gold at 2070.
In principle, we consider that the best buying area is at 1960 or close to it, and the closest selling area is at 1999. And honestly, if the 2000 level is breached and held there for hours, never look for selling, but rather look for buying in any correction by targeting 2070, and from there you may reap your profits and Attempt to enter into selling positions.
With all the events we have listed, it is not surprising that gold has reached 2070 levels this week, so be careful, follow us on our channel on Telegram, YouTube, TikTok, Twitter and Facebook (NASDAQ:META) to receive all new things, as we update daily everything Regarding the markets, just search for us (Mahmoud Edlbi) in those means.
We wish you a successful week and warn you for the last time of trading it.
All of the above is personal diligence and a study of the market conditions. The decision remains for the speculator and the investor, knowing the risks of this decision.