$XAU U.S. debt has broken through 40 trillion, while gold is playing a "roller coaster" around the 4400 mark. How should this game be played?
Data show that in early August, gold surged from $4000 to nearly $4700, a gain of more than 15%, then fell sharply by 7% below the 4400 mark due to expectations of Federal Reserve rate hikes. Today, spot gold has once again dipped to $4410.
According to Bizzong, the essence of this roller-coaster move is a contest between liquidity and credit. On the one hand, U.S. federal debt has exceeded $40 trillion, shaking the foundation of dollar credit, which is the underlying logic for gold's medium- to long-term rise; on the other hand, stronger-than-expected nonfarm payrolls have strengthened the Fed's hawkish stance, and short-term liquidity tightening is weighing on gold prices. It's like a seesaw: one end is the Sword of Damocles of runaway U.S. debt, and the other is the short-term pressure of rate-hike expectations. In addition, OPEC+ suspending production increases has pushed up oil prices, subtly boosting inflation expectations and providing bottom support for gold.
From a technical perspective, gold prices are likely to fluctuate widely in the $4000 to $4500 range in the short term. Bizzong suggests not chasing gains or selling into weakness within the range; instead, accumulate positions in batches near the $4000 mark on dips, hold steadily for the medium to long term, and let the bullets fly for a while.#美伊互袭油轮冲突升级
Data show that in early August, gold surged from $4000 to nearly $4700, a gain of more than 15%, then fell sharply by 7% below the 4400 mark due to expectations of Federal Reserve rate hikes. Today, spot gold has once again dipped to $4410.
According to Bizzong, the essence of this roller-coaster move is a contest between liquidity and credit. On the one hand, U.S. federal debt has exceeded $40 trillion, shaking the foundation of dollar credit, which is the underlying logic for gold's medium- to long-term rise; on the other hand, stronger-than-expected nonfarm payrolls have strengthened the Fed's hawkish stance, and short-term liquidity tightening is weighing on gold prices. It's like a seesaw: one end is the Sword of Damocles of runaway U.S. debt, and the other is the short-term pressure of rate-hike expectations. In addition, OPEC+ suspending production increases has pushed up oil prices, subtly boosting inflation expectations and providing bottom support for gold.
From a technical perspective, gold prices are likely to fluctuate widely in the $4000 to $4500 range in the short term. Bizzong suggests not chasing gains or selling into weakness within the range; instead, accumulate positions in batches near the $4000 mark on dips, hold steadily for the medium to long term, and let the bullets fly for a while.#美伊互袭油轮冲突升级
