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. Dapao and YSL want to resolve the issue quickly, but the likelihood of that happening is decreasing, while the possibility of a long-term stalemate is increasing. Many people may not have expected this, but are you prepared?

It’s important to know that falling into a prolonged war is not what Dapao or anyone else desires, 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. Dapao’s plan to support proxies, push for peace talks, and force Langlang to kneel has completely failed. Now, Langlang has entered the revenge stage. As time passes, Langlang’s retaliatory measures will grow larger, and Dapao and YSL will be caught in endless defense and counterattack. Therefore, this prolonged war is unavoidable…

In this context, the role of the US dollar becomes very important because it is a key defensive point for Dapao Financial. Especially under the current circumstances, the dollar cannot show weakness; it must remain strong. We see the dollar strengthening, gradually breaking higher, giving a sense 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 the dollar’s strength. So, it’s likely that the dollar will continue to rise, with a breakout above 99.50 becoming increasingly possible. Be sure to follow the trend.

As for gold, many believe that a big event will cause gold prices to soar—like a cannon firing, gold will rise a lot if the Middle East situation changes dramatically. But is that really the case? Don’t forget how inflated gold prices are. Plus, with the shift from expectations to reality in the Middle East, the market could enter a phase of buying on expectations and selling on facts. So, don’t simply assume gold will rise; instead, be cautious of a sudden sharp decline in gold prices. Once the market lacks funds, gold could become a lamb waiting to be slaughtered, and a price drop is inevitable. Stay vigilant!