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 anticipated this, but are you prepared?

It’s important to understand that falling into a prolonged conflict is not what Dapao and YSL desire. The reality is harsh. They initially thought that by quickly eliminating key figures like Langlang, the problem would be resolved 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 a revenge phase. As time passes, his retaliatory measures will intensify. Dapao and YSL will also find themselves in endless defense and counterattack, making this prolonged war unavoidable.

In this context, the role of the US dollar becomes particularly important, as it is a key defensive point for Dapao’s financial strategy. Especially under current circumstances, the dollar cannot weaken; it must remain strong. We see the dollar strengthening, gradually breaking above key levels, giving an impression 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 its strength. Therefore, it’s likely that the dollar will continue to rise, with a potential breakthrough above 99.50. It’s important to follow the trend and act accordingly.

As for gold, many believe that a loud gunshot means gold will skyrocket, especially if there’s a major change in Middle East tensions. 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 move from buying on anticipation to selling on fact. So, don’t simply assume gold will rise; instead, be cautious of a sudden sharp decline in gold prices. Once market funds dry up, gold could become a lamb waiting to be slaughtered, and a price drop would be inevitable. Stay vigilant in all matters!