Evergrande's Chapter 15 Filing and the Impact on Gold
Subsequently, on Thursday, Evergrande, another prominent Chinese real estate company, filed for Chapter 15 protection within the United States. Chapter 15 is akin to filing for Chapter 11, aimed at companies with both international operations and a presence in the US.
Historically, financial markets have displayed apprehension when the potential for contagion comes into play.
While gold is occasionally perceived as a safe haven in such situations, this hasn't been the scenario in the latest instance of market disruption. Treasuries are also recognized as a secure asset and are occasionally sought after during periods of upheaval.
The value of both these assets has been declining, and the driving factor behind this movement could likely be linked to developments originating in China.
As Treasury yields rise, causing a decline in capital value, investors might be inclined to shy away from gold, which lacks yield.
The GVZ index functions as a gauge of implied volatility for gold, following a methodology similar to the VIX index's assessment of volatility for the S&P 500.
XAUUSD BUY 1891-1893🕯
✅ TP1: 1900
✅ TP2: 1905
⚠️ SL: 1888
Historically, financial markets have displayed apprehension when the potential for contagion comes into play.
While gold is occasionally perceived as a safe haven in such situations, this hasn't been the scenario in the latest instance of market disruption. Treasuries are also recognized as a secure asset and are occasionally sought after during periods of upheaval.
The value of both these assets has been declining, and the driving factor behind this movement could likely be linked to developments originating in China.
As Treasury yields rise, causing a decline in capital value, investors might be inclined to shy away from gold, which lacks yield.
The GVZ index functions as a gauge of implied volatility for gold, following a methodology similar to the VIX index's assessment of volatility for the S&P 500.
XAUUSD BUY 1891-1893🕯
✅ TP1: 1900
✅ TP2: 1905
⚠️ SL: 1888
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Comment:
Spot gold, indicating the current market price for gold, increased by 0.2% to reach $1,892.02 per ounce as of 0358 GMT. This rise follows a period where it had touched its lowest value since mid-March the previous day. Concurrently, U.S. gold futures also experienced a 0.4% upturn, reaching $1,921.9
