What's happening for Gold now?
Many people say history will repeat itself, that's likely what is happening with XAUUSD now since the record high earlier last year during the pandemic, which I believe already reached its peak and now the downside will continue to 1400-1500 area. Why?
If you look back into what happened during the 2008 Financial Crisis, Gold rallied from 900 - 1920 until 2011, before started fall to the area around 1100 for several years. The reason was during 2008, The Fed policy with a 0% interest rate drove the price to record high to support global economic recovery.
What's happening now is Gold is on an uptrend since 2018, which is quite similar to what happened 10 years earlier, and exactly 3 years rally until the peak was reached at 2050 and started to fall again. With the current state of global economic recovery post-pandemic, extra loose Central Bank policy is driving Inflation to 13 years high where it forced rate hike on the global scale soon enough. Again, when the inflation ease and government support has been pulled to pra-pandemic, it will trigger the history to repeat itself.
Let me know what you think!
If you look back into what happened during the 2008 Financial Crisis, Gold rallied from 900 - 1920 until 2011, before started fall to the area around 1100 for several years. The reason was during 2008, The Fed policy with a 0% interest rate drove the price to record high to support global economic recovery.
What's happening now is Gold is on an uptrend since 2018, which is quite similar to what happened 10 years earlier, and exactly 3 years rally until the peak was reached at 2050 and started to fall again. With the current state of global economic recovery post-pandemic, extra loose Central Bank policy is driving Inflation to 13 years high where it forced rate hike on the global scale soon enough. Again, when the inflation ease and government support has been pulled to pra-pandemic, it will trigger the history to repeat itself.
Let me know what you think!
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