Gold: Gold, one of the keys in troubled geopolitical times

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The News Bulletin 247 team has selected an indexing product, of the 100% certificate type, which allows exposure, without leverage, to the dynamics of gold, a raw material in great shape which constitutes a safe haven par excellence. A relevant choice against a backdrop of chronic geopolitical questions.

Christopher Dembik, investment strategy advisor at Pictet AM, talks about localized geopolitical tensions for 2024.

“Venezuela has territorial designs on neighboring Guyana in order to obtain its reserves of low hydrogen sulphide oil (high quality oil). The Houthis close to Iran are increasingly threatening international trade, which will certainly provoke a response from the international community. Finally, tensions between China and the Philippines rose a notch at the beginning of the month over a few atolls located in the South China Sea. We can expect that geopolitical risk is an important marker [en 2024].”

The geopolitical risk in the Red Sea, combined with the liquidation in Lebanon of the number two of the political branch of Hamas, naturally weighs, in the background, on the appetite for risk on the financial markets.

“If the inflation / central banks theme should naturally continue in 2024, this new year will not be able to ignore, once again, (geo)political risks as the subjects are numerous in the four corners of the globe” warns Thomas Giudici, head of the bond management of Auris Gestion.

“In the Middle East first of all, where we thought the conflict was quite limited but which could ultimately have more repercussions on the economy than initially anticipated: tensions in the Red Sea have in fact increased a notch in in recent days with the entry of an Iranian warship into the area, reviving fears of an extension of the conflict, the day after American strikes on three Houthi ships, in response to attacks on the carrier Maersk, in part of the multinational naval force responsible for protecting ships in the area.”

KEY GRAPHIC ELEMENTS

The graphical analysis of daily data of the GOLD PI OPENB certificate makes it possible to identify an upward trend in the short term as well as in the medium term. No slowing movement is to be reported in the sense of the dynamics of the RSI oscillatory (relative strength index). A crossing of 168.10 euros would release additional buying energy.

FORECAST

In view of the graphic elements mentioned, the News Bulletin 247 team suggests that active investors take a purchasing position on the GOLD PI OPENB certificate (1216B), at the current price, with €185.00 in their sights. A protective stop must be placed at €159.90.

DAILY DATA CHART