Zong Xiaoli: The US Dollar Successfully Breaks Upward, How Will Gold Move Tonight?

The market is constantly changing. Look, the US dollar index is soaring, breaking through an important resistance level, and continuing to rise…

Some people might not understand why the dollar couldn’t rise multiple times before, but now it suddenly surges. The reason is that, due to the Middle East situation, a large amount of capital is flowing out. The dollar’s protective strength is increasing, so efforts are being made to push up the dollar’s price, aiming to forcibly raise it and protect dollar liquidity. But whether this move will be effective is unknown at the moment. Anyway, we just need to know that currently, the market’s protective energy is driving up the dollar. Everyone can look for opportunities to go long on the dollar…

As for gold’s trend, are you surprised? Why is gold prices falling again? What’s really going on?

Actually, the pressure on gold is increasing. The main reason is that the Middle East turmoil has caused a large outflow of funds from the dollar. These funds first exit from gold (closing positions), then flow out of the dollar one by one. This creates the strange situation with gold. Some people are eager to buy gold, while a larger group is looking for opportunities to exit gold. Under these circumstances, gold cannot form effective upward momentum and is forced into a strange oscillation. As time goes on, more and more funds start to withdraw from gold, and the pressure on gold will gradually become apparent. Plus, today is Friday, so the pressure on gold will increase further. Therefore, it’s possible that tonight, after some fluctuations, gold will ultimately show a sideways decline. Be cautious and consider shorting on rallies, with light positions. Just for your reference!