Bullish Gold/XAU and bearish EUR/USD to come.
The new year has started strong with a clear MSS and retrace to the upside. The longer term picture is set for gold to take out the ATH made in October of last year. Donald trump's inauguration day is approaching on the 20th of January along with his long list of policies and investors are unsure which way the tide will turn. Trump is intending on increasing Import taxes between 10%-25% across Mexico, Europe, China and Canada, in which economists predict retaliation resulting in a tariff war and causing significant economic damage. This could directly affect Inflation rate throughout the year as a 1% increase in tariff's against the US could be seen as a 0.1% increase in inflation due to the increase in importation costs.
Gas and Oil prices could be looking to increase in Europe as Ukraine cuts the pipeline the runs oil from Russia directly into Europe allowing them to have cheaper oil. This is the second and final pipeline that ran from Russia to Europe, after the Nord stream pipeline was blown up by the US in September of 2022. All this is taking place to hurt Russia financially as disrupt the growth in their economy. But all whilst this is happening, Russia are selling their oil at a discount to countries like Turkey and India for a discount and this allows them to break it down and 'blend' their oil into their own sources and labelling it their own, before selling it back off to places like Europe at a premium. The US will most likely use this opportunity to strengthen their own economy at the cost of its ally by selling them their own oil at a premium to make up for oil lost from the Russian pipeline cut off. All this has been orchestrated by the US and as a result, it is backfiring on their own which will damage the European economy as soaring energy costs forces many business especially in the automotive sector to close down as the plants cannot sustain this increase causing mass lay offs and closures.
During all this uncertainty, investors are holding back and instead putting their money in safer commodities such as precious metals like Gold and Silver which could help drive prices up before a potential market correction later in the year.
Gas and Oil prices could be looking to increase in Europe as Ukraine cuts the pipeline the runs oil from Russia directly into Europe allowing them to have cheaper oil. This is the second and final pipeline that ran from Russia to Europe, after the Nord stream pipeline was blown up by the US in September of 2022. All this is taking place to hurt Russia financially as disrupt the growth in their economy. But all whilst this is happening, Russia are selling their oil at a discount to countries like Turkey and India for a discount and this allows them to break it down and 'blend' their oil into their own sources and labelling it their own, before selling it back off to places like Europe at a premium. The US will most likely use this opportunity to strengthen their own economy at the cost of its ally by selling them their own oil at a premium to make up for oil lost from the Russian pipeline cut off. All this has been orchestrated by the US and as a result, it is backfiring on their own which will damage the European economy as soaring energy costs forces many business especially in the automotive sector to close down as the plants cannot sustain this increase causing mass lay offs and closures.
During all this uncertainty, investors are holding back and instead putting their money in safer commodities such as precious metals like Gold and Silver which could help drive prices up before a potential market correction later in the year.
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