Gold is bullish: A warning sign of war or economic crisis?

Data from CryptoQuant shows that gold prices are on the rise, accompanied by the signal "WAR Loading…", causing investors to worry about significant fluctuations that may occur soon. Historically, gold has always been seen as a safe haven whenever geopolitical instability or financial crises arise.

According to the analysis, the current rise in gold prices may reflect two main scenarios. First, the risk of war as geopolitical tensions between major powers escalate. In the context of conflict, investors fear currency devaluation or severe market volatility, prompting them to turn to gold, driving prices up sharply.

Secondly, the rise of gold can also be a signal foreshadowing a widespread economic crisis. With high inflation, ballooning global debt, and tightening monetary policy, cash flows into gold to preserve value, reflecting shaky confidence in the financial system.

Analysts emphasize that the rise of gold is not merely a short-term fluctuation but also an indicator of the widening instability. This indicates that both geopolitical risks and the threat of a global economic recession are being factored into the market simultaneously.