Analysis XAU/USD and World War IIIIn this post, we will analyze the gold chart with the symbol XAU/USD
Gold is highly dependent on the value of the US dollar as well as global political developments.
Possible conflicts between China and Taiwan on the one hand and verbal conflicts between Iran and Azerbaijan and Turkey on the other hand could affect the price of gold.
The US stance against the Taliban's rise to power in Afghanistan, as well as the outcome of the Vienna talks between Iran and the p4+ 1, could also affect the global price of the precious metal.
But apart from the above issues, US fiscal policy also has an immediate impact on this chart. For example, this week there are reports of 10- and 30-year bonds that the Fed's policy could increase the value of the dollar and devalue the xau/usd , or vice versa, with the devaluation of the dollar, gold will gain strength.
CPI and other economic news data should not be underestimated either, as it can cause large uptrends or downtrends.
Another point is that the price of BITCOIN is rising and has attracted the attention of many small and large investors, which can also reduce the value of gold.
But based on technical analysis:
The US dollar index with the symbol DXY has formed a triangular pattern from which the exit is likely to occur this week. If the Fed pursues its current policy and postpones interest rate changes to the future, the dollar will probably hit the bottom of the triangle.
Gold is in the sell range, which is below the stop loss, because we see that this week's data is useful for the dollar, and this will continue the downward trend. That's why tp is around support.
A trend line has also played the role of resistance.
The MACD line was also able to break the SIGNAL line downwards, which is accompanied by a decline in the EMA 20 to 10, which confirms the downtrend.
Worldwars
U-Shape? V-Shape? Recovery Shapes Explained And What They Mean ?🎈 Here are the most common economic recovery shapes and what they mean. While economic growth can be measured by any number of metrics—like the stock market or employment rates for example—we’ll focus on GDP.
📍 A V-shaped recovery means that the economy bounces back quickly to its baseline before the crisis, with no hiccups along the way. Growth continues at the same rate as before. This is one of the most optimistic recovery patterns because it implies that the downturn did not cause any lasting damage to the economy.
Under this scenario, the economic damage lasts for a longer period of time before eventually reaching the baseline level of growth again. The economy bounces back, but the damage at the bottom lingers for a while.
📍 In a W-shaped recession, also called a double dip, the economy moves beyond a recession into a period of recovery before falling back down again into another recession. The initial recovery is sometimes known as a bear market rally.
One example: After the oil and inflation crises in 1979, the U.S. fell into two back-to-back recessions in 1980 and 1981.
📍 An L-shaped recovery is the most pessimistic scenario. In this shape, the economy recovers to a certain degree from a steep drop, but growth never reaches pre-crisis levels for years, if at all. A period of economic stagnation follows.
📍 A recovery scenario resembling the Nike “swoosh” logo is characterized by a steep drop and a gradual recovery, meaning that it takes much longer to return to pre-crisis growth levels than it took to fall into recession.
A variant of this is a square root-shaped recession where growth recovers but then plateaus before reaching pre-crisis levels. Lowenstein says this is his base case scenario.
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