Is the two countries have to do with gold? Or will this cause this situation? I heard that when the war really launched the war, the gold plummeted again? Is that so? Isn't it another situation?
5 thoughts on “Why does Russia's ultimate ultimatum in Ukraine cause stock plunge and gold price soaring?”
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Because Russia has made an ultimatum to Ukraine, investors in the market will have expectations for war. War can be imagined that it will affect economic development and market order. For product exports, the country is likely to exceed currency, causing malignant inflation, reduced people's consumption capacity, and the people's power to cause consumption weakness. The labor market will also increase labor prices due to the sacrifice of a large number of people. All in all, once a war occurs, the company's performance will be very affected, so investors have sold stocks to avoid risks, resulting in a decline in the stock price.
Once war occurs, gold is naturally the best asset of hedging. Because currency is facing inflation and the risk of instability of the regime. Therefore, the increase in demand for gold at this time has led to rising gold prices.
Why does reverse price change occur once a war really occurs? In fact, this is not certain, mainly because the actual situation is better or worse than expected. Because people often have an excessive reaction and a negative or positive bubble, once it is expected to become a reality, people will find that the price reaction is over, so the price may be corrected in the opposite direction. Of course, this is not necessarily happening.
In fact, Russia and Ukraine have limited impact on international gold prices. It is a regional contradiction upgrade. The Russian stock market fell 8%yesterday, and the national stock market in the United States and Europe was stable, which shows that the impact on the United States and Europe is minimal.
The gold price has rebounded in the past two months, which has nothing to do with the situation of Russia and Ukraine.
Once the war broke out in the Gulf country, and endangering the appearance of the US interests, the price of gold prices will be turbulent. You know, the financial crocodile of Wall Street is quite powerful.
No matter how they fight these two countries, as long as the world police stand out, they will directly affect the gold and peripheral stock markets. A Ukraine can't afford a big storm, now the world is paying attention to because the United States accuses Russia of not authentic, and the European Union wants to Laurland to join. The world -class power is separated from the air, and it is the world's influence! Because gold has a hedging attribute, the currency depreciation is fastest every war. Only gold can resist the depreciation of the currency, thereby raising the price of gold.
As soon as the guns rang, the golden gold, gold has been the best asset -free assets since ancient times. When the war occurs, it will promote the flow of funds from other financial markets to the gold market. Refer to the rise and decline of gold during the Libyan war.
Shengshi antique, troubled times golden