Before the outbreak of war or conflict, the price of gold often shows a relatively high probability of rising at this time, because the war is about to happen, which has a profound impact on people's panic. The investment characteristics of gold, which are different from other products, also make it an important choice for hedging. Therefore, under the combined effect of these factors, the price of gold will rise rapidly.
Gold fluctuation trend
People expected a civil war to break out, but before the war really broke out, the price of gold had followed expectations, and the war premium had already appeared in the price increase. For example, the outcome of the war between the United States and Iraq is already very clear, so in fact, the outbreak of the war has declared the end of its role in promoting gold prices.
When the war is going on, the price of gold in this link is mainly influenced by people's prediction of the future development of the war. If people are optimistic about the scale and level of the current war and the lean development trend, it will curb the rise of gold. On the contrary, if people are pessimistic about the development of the war, it will further increase the international gold price.
For example, once a sudden war breaks out, it is because it generally exceeds people's expectations, so the impact on gold prices is also explosive. The price of gold tends to rise rapidly first and then fall rapidly. For example, when Iraq suddenly invaded Kuwait, the price of gold soared for a short time.