Insane Gold Demand (>3.5% Increase in 5 hours)
Yes you guessed it, it’s true.
War increases panic and uncertainty, so in Gold we trust… YET, (there’s always a YET):
You need to keep in mind that:
1/ Overbought levels and liquidity lower levels are Kevin such high demand situations.
2/ At war, the weights of Macro catalysts shifts from 50% driven by news and 50% economic, to => 80% driven by news and 20% economic events.
Finally it is highly doubtful to buy at those current levels (1930$ or 1940$) but rather you need to be focused on the SELL side due to the fact that it offers higher Risk-to-reward ratio on the downside. That does not mean that you stop managing your current positions’ risks, yet don’t go Call for Long.
(This is my personal opinion in trading for more than 7 years, so I saw in wars how gold behaved historically. Volatility an liquidate your position & give you a sign of an uptrend yet it’s not the true market nature to be solely dependent on regional news, but rather global)
War increases panic and uncertainty, so in Gold we trust… YET, (there’s always a YET):
You need to keep in mind that:
1/ Overbought levels and liquidity lower levels are Kevin such high demand situations.
2/ At war, the weights of Macro catalysts shifts from 50% driven by news and 50% economic, to => 80% driven by news and 20% economic events.
Finally it is highly doubtful to buy at those current levels (1930$ or 1940$) but rather you need to be focused on the SELL side due to the fact that it offers higher Risk-to-reward ratio on the downside. That does not mean that you stop managing your current positions’ risks, yet don’t go Call for Long.
(This is my personal opinion in trading for more than 7 years, so I saw in wars how gold behaved historically. Volatility an liquidate your position & give you a sign of an uptrend yet it’s not the true market nature to be solely dependent on regional news, but rather global)
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