Gold analysis. Why is gold rising?
It is necessary to consider many factors.
Foreign currency (US dollar..) - gold - oil - national currency, these 4 elements are interconnected.
Oil is necessary for machines that replace human labor. A country with oil is a developing country if it knows how to apply it.
Previously, people exchanged gold for oil, but it was inconvenient.
Therefore, the US dollar became a substitute. But due to excessive profits from high demand, the person with the dollar began to manipulate the oil market.
- This happened when he became stronger, and he forced everyone to trade oil for US dollars. At the same time, he seized oil fields. He had oil and the ability to print dollars, so he became too powerful. He dominated for decades, as countries gradually began to rely on both the US dollar and oil.
- Europeans, noticing this earlier, began to use the common currency of Europe (euro), and gold started to rise from that moment.
- Asia and Africa also began to follow this example.
- Since he imposed sanctions and froze assets against the opposing country in US dollars, it unexpectedly became a double-edged sword. It is beneficial for weakening the opponent, but it makes other countries realize that to compete with him, they need to reduce their dependence on the US dollar. And they began to trade in national currencies and gold in exchange for oil. Gradually, this will create polarization as the US dollar steadily decreases in the competitive trading system. This is very unfavorable for the US dollar...
Statistics of the multinational trading system show that in the next decade there will be no currency capable of breaking the dominance of the US dollar in global trade, but over time, polarization will be observed. Therefore, gold will be profitable when the US dollar loses its market share.