Geopolitical Tension Affects Gold Prices Today
- 2023-02-21
- Posted by: Widyadhana Mufida
- Categories: Commodities, News
Geopolitical tensions influence the price of gold today. The global reference for gold price has the potential to strengthen amid geopolitical tensions between America and China (21/02/2023).
Reported by market.bisnis.com, The Monex Investindo Futures analyst team assesses that the America-China geopolitical tensions have the potential to support gold prices. In addition, uncertainty over the prospects for global economic recovery is also having an effect.
“In today’s trading in Asia, gold has the opportunity to be bought to test the resistance level of US$1,848 per troy ounce. As long as prices stay above the support level of US$1,838 per troy ounce,” Monex analysts wrote in their research.
Meanwhile, a decline lower than the support level has the opportunity to trigger a sell-off of the gold price. So that it tests the next support level of US $ 1,833 per troy ounce.
Previously, China declared a borderless partnership with Russia. Currently, China is trying to convince the world that they are a neutral actor, which can help end the war in Ukraine. China proved this by sending Chinese State Counselor Wang Yi to Moscow to submit a world peace proposal. This step was taken to end the Russia-Ukraine conflict.
This move was underestimated by America. Foreign Minister Antony Blinken accused China of privately considering providing weapons to Russia. Based on this, the two sides failed to reach an agreement during a meeting at a security forum in Germany.
“I don’t doubt Beijing’s desire for peace. But at the same time, the proposal seems extraordinary. To be credible, China has to be seen as an independent broker. But China has clearly chosen sides in this conflict.” said Raffaello Pantucci, senior analyst at Singapore’s S. Rajaratnam School of International Studies.