Risk Aversion Sentiment Is Back ,It`s Time To Buy Gold Now?

After Trump was elected president of the United States, the market once believed that there could be a peaceful solution to the Russia-Ukraine conflict in a short period of time.

But instead，the media revealed that the U.S. government had lifted restrictions on Ukraine's use of weapons provided by the United States to attack targets in Russia in depth, then Russia updated its nuclear policy, and then the two countries began to fire missiles to each other to escalate the conflict, which dispelled the market from Russia. The idea that the Ukrainian conflict can end in a short time has renewed risk aversion in the market.

Gold prices have soared strongly, and new highs are expected

Since the conflict has escalated, the war premium (risk aversion) squeezed in the last two weeks has returned, causing gold prices to skyrocket. Since Trump's clear election failed to quell the war, it is only possible to quell the conflict until he officially takes office.

Therefore, the current risk aversion of gold will remain high, and the price of gold will be difficult to adjust. It is not difficult to break through 3,000 points. Of course, the adjustment is also quite drastic. After Trump takes office next year, maybe we will see a completely different trend of gold prices. Don't be too optimistic, just look at it in the short term.

Technically, the price of gold relies on the 20-week moving average and rises strongly, so this line is the long-short watershed of the gold price in the future, and it is not bearish if it is not broken

Silver following the supplementary increase

The price of gold has skyrocketed, and silver is not much weaker. There is a demand to make up for the increase, so the speculative bulls of silver can redeploy.

It is still recommended that you trade in small amounts to avoid large losses caused by unexpected fluctuations. Technically, silver can be used as an important stop loss point at the recent low of US $30. If it falls below it, it needs to be re-evaluated. If it does not break, it may be the recent adjustment low, and it will hit the US $40-50 mark I expected before. Therefore, when the gold price is strong, silver should not be pessimistic.

Agricultural products with grinding bottom

Most of the agricultural products in the US market are already in the planting cost area, so their price fluctuations tend to bottom out. Without the blessing of extreme weather, agricultural products are varieties that cannot afford to fall or rise, and losing time is their biggest feature. At present, except for a few small agricultural products (such as orange juice, coffee, etc., which are concentrated in producing areas with weather disturbance), other varieties are waiting for one-time fermentation of weather problems. U.S. soybeans are no exception. It is difficult to deviate significantly from the low point in August at present, but there are really not many abnormalities in the weather. Coupled with the expectation of next year's trade war, it is negative for U.S. soybeans to a certain extent, so the price of U.S. soybeans continues to be tepid. Friends who are in a hurry can track other varieties first, such as silver. The rhythm of agricultural products still needs patience.

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