Zong Xiaoli: How will the US dollar perform under the stimulation of the Middle East situation? How will gold perform?

Currently, the Middle East situation has clearly entered the second stage—the prolonged war phase. Dapingpiao and YSL want to resolve the issue quickly, but the likelihood is decreasing, while the possibility of a long-lasting stalemate is increasing. Many people may not have anticipated this, but are you prepared?

It’s important to understand that falling into a prolonged war is not what Dapingpiao hopes for, but reality is cruel. They initially thought that by quickly eliminating key figures like Langlang, the problem could be solved swiftly. However, the opposite happened—Langlang’s key figures’ deaths sparked nationwide anger, resistance, and revenge. Dapingpiao’s plan to support proxies, push for peace talks, and force Langlang to kneel has completely failed. Now, Langlang has entered a revenge phase, and over time, his retaliatory measures will intensify. Dapingpiao and YSL will also find themselves in endless defense and counterattack, making this prolonged war unavoidable.

In this context, the role of the US dollar becomes particularly important, as it is a key defensive point for Dapingpiao Financial. Especially under current circumstances, the dollar cannot show weakness; it must remain strong. We see the dollar strengthening, gradually breaking above key levels, giving an impression of strength and stability. Of course, when the dollar is strong, it can also seize the opportunity to drain global liquidity, which is one of the main purposes of its strength. Therefore, it’s likely that the dollar will continue to rise, with a breakout above 99.50 becoming increasingly probable. It’s important to follow the trend and act accordingly.

As for gold, many believe that a loud gunshot means gold will rise sharply, especially with major changes in the Middle East situation. But is that really the case? Don’t forget how inflated gold prices are. Plus, with the shift from market expectations to actual events, the market could move from buying anticipation to selling reality. So, don’t simply assume gold will go up; instead, be cautious of a sudden sharp decline in gold prices. Once market funds dry up, gold could become a lamb waiting to be slaughtered, and a price drop would be inevitable. Stay vigilant!