THE UKRAINE INVASION
Rippling Volatility Across Several Markets
Crises are often seen to be full of threats with respect to amateur traders,
yet full of abundant opportunities with respect to the professionals. Large
economic and geopolitical changes are usually accompanied with massive long
and short trading volumes, where significant amounts of wealth transfers are
recorded. The Ukraine invasion spiked rippling volatility across several
markets, where the safe haven, Gold, the leading U.S index,
,and the main source for war,
, are seen to be attracting the greater amount of investor participation.
| GOLD | PRICE RANGE |
| 2022: RUSSIAN-UKRAINE WAR | +16.32% |
| 2020: COVID-19 | +43% |
| 2008: FINANCIAL CRISIS | +61% |
| ALL TIME HIGH | 2074 |
| 2022 HIGH | 2070 |
| PERCENTAGE TO REACH ALL TIME HIGH | +0.2% |
Over the years, when inflation or panic invade economies, gold soars
sharply towards new highs, and corrects sharply after tensions ease out.
This fact became a guideline for professional traders to set their
strategies for the gold market amidst turbulent conditions.
*Trading Forex is Risky
Once
again, gold retained its safe haven label due to rising geopolitical
tensions, and rising only %0.2 away from its all-time high. Since
history rhymes, the large spike moves for gold might record a new
all-time high, and be followed by a steep correction, as a reaction to
potential resolutions after the economic and geopolitical tensions ease
down.
As
worldwide panic rippled across nations to close their borders, as a
defensive strategy against the new virus, the safe haven soared towards
its all-time high of $2,074/oz.
In 2008,
gold surged to new nominal all-time highs (at the time), breaking the
1,000$ per oz. From March 2008 12 to October 2008, prices fell to their
lowest value for the year, 692.50$/oz, the moment of the bailout of Bear
Sterns and the bankruptcy of Lehman Brothers. However, gold managed to
break its $1000/oz record, and surpass the price level all the way to
its highest recorded value, $2074/oz in 2020.
(The above chart disguises the fact that the US$ gold price increased at a
fairly consistent annual rate, and has since experienced a multi-year
correction (as opposed to a collapse).
A Few Steps To Enroll
