Summary: The situation in Kosovo is escalating! Western countries issued an “ultimatum”; be wary of rising risk aversion and detonate the gold market!
Kosovo situation escalates! Western countries issued an “ultimatum”
On Monday (December 26), according to the Russian Radio (RT) website citing Serbian media reports, the ambassadors of the United States, Britain, France, Germany and Italy issued an “ultimatum” to Serbian President Vucic. Western countries have called on Serbia to dismantle roadblocks in Kosovo within 24 hours, otherwise Kosovo’s Albanian “Prime Minister” Kurti will be allowed to attack local Serbs.
On the evening of the same day, Serbian President Vucic ordered the Serbian army and police to enter the highest level of combat readiness. According to The Jerusalem Post (The Jerusalem Post), on the evening of December 25 local time, someone fired at a NATO patrol near the city of Zubin Potok in northern Kosovo.
The author reminds that Kosovo is located in the Balkan Peninsula in southeastern Europe and unilaterally declared independence in 2008. Serbia, while recognizing its democratically elected government, only recognizes the region as one of Serbia’s two autonomous provinces.
The Balkan Peninsula is located at the southeastern tip of Europe, with a total area of about 550,000 square kilometers, known as the “European powder keg”. Because of the particularity of its geographical location, every war in this land has had a major impact on the geopolitical structure of Eurasia.
Keep an eye on gold as the geopolitical situation ferments, and the market may be on the verge of breaking out! Click to get the trend trading guide!
In fact, since the outbreak of the Russia-Ukraine conflict in February 2022, Serbia has been under pressure from the West and has been a topic of international media attention. Serbia, which relies heavily on Russian gas and hopes for Moscow’s support on the Kosovo issue, has resisted Western calls for sanctions on Moscow. Vucic has previously stated that Serbia is paying a high price for not implementing sanctions against Russia.
Be wary of rising risk aversion sentiment, gold urgently needs direction choice!
In fact, the situation in Kosovo is not unconnected with the conflict between Russia and Ukraine. In addition, from a historical perspective, chaos in this region will eventually lead to larger chaos in Europe. Therefore, investors need to be vigilant against the continued escalation of the situation in Kosovo Eventually the gold market will detonate.
In fact, the situation between Russia and Ukraine is currently at a delicate stage. On Monday (December 26), the Russian Ministry of Defense announced that earlier in the day, it seemed that Ukraine used drones to launch an attack on the Engels Air Force Base in Saratov Oblast, Russia, causing 3 Russian soldiers died.
Medvedev, vice chairman of the Russian Security Council, said that Russia should not stick to “traditional etiquette” and should use all available defensive means to deal with sanctions from unfriendly countries.
Gold urgently needs direction selection:
Image source: tradingview
There is no doubt that any outbreak of regional conflict will boost the safe-haven buying of gold. Interestingly, affected by the uncertainty of the Fed’s monetary policy, gold has been consolidating around the $1,800 mark since December. Urgent choice of direction.
However, in the author’s opinion, US inflation is gradually showing more evidence of “peaking and falling”. Last Friday (December 23) it wasthe fedIt is regarded as the best indicator to measure inflation – the core PCE price index in the United States in November increased by 4.7% year-on-year, which was lower than the previous value of 5% growth;
The U.S. PCE price index rose by 5.5% year-on-year in November, falling for the fifth consecutive month after reaching a 40-year high this summer, and hitting a new low since October 2021.
In addition, considering that the Bank of Japan adjusted the upper limit of the YCC policy range last week or hinted that it has taken the first step of monetary normalization, this adds certainty to the downward trend of the dollar in the medium term. Coupled with the fact that the market is betting that the Fed may end its monetary tightening policy in 2023, the medium-term outlook for gold tends to be optimistic.
Gold: Breaking through the Gann 2/1 line level, the medium-term trend has turned upward
Gold breaks through the Gann 2/1 line level:
Image source: tradingview
Gold has now broken through the Gann 2/1 line level (around $1770), suggesting that the downward trend of gold prices since the high of $2070 on March 8 has come to an end and is in a mid-term uptrend.
Gold daily chart:
Although gold is facing short-term choices, gold has repeatedly raised $1,804 in the past four weeks without success, suggesting that gold’s upward momentum is weak. However, considering that the medium-term trend has turned upward, it is not appropriate to be short on gold prices before gold effectively falls below the 1770 level.
In the medium term, gold is expected to further challenge $1,804. If it can break through effectively, it is expected to challenge the resistance of $1,850 and $1,920 upwards. Investors should keep their bullish thinking unchanged.(Billywritten)
Grasp the important turning point of the follow-up gold trend:
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