Geopolitics: Direct conflict, risk of spreading
The situation escalated to unprecedented levels after a tumultuous night:
- Iran launches “hypersonic” attack: Tehran claims to have used Fattah-2 hypersonic missiles to attack Israel and is “controlling the skies.” At the same time, Iran also issued a warning asking people in Tel Aviv and Haifa to evacuate.
- Israel responded strongly: The Israeli Air Force has launched airstrikes on Iranian missile production facilities. Israeli officials openly discuss the scenario of “regime change” in Iran. More than 2,700 Israeli citizens in sensitive areas have been evacuated.
- US steps in, G7 divided: President Trump is in the Situation Room, calling on Iran to “surrender unconditionally” and claiming to know where Ayatollah Khamenei stands. But Trump is also at odds with his own intelligence chief over Iran’s nuclear program, exposing a rift within Washington that has prevented the G7 from issuing a joint statement that is strong enough.
- Polarized world: China accused Mr Trump of “adding fuel to the fire”. Meanwhile, Russia continued its fierce airstrikes on Kiev, killing an American citizen, and North Korea is expected to send 1,000 engineers to Russia to help with reconstruction.
[Image: Middle East map with arrows showing attacks between Iran and Israel]
Financial Market “Waves”
- Gold (XAU/USD): As the “King of Safe Haven,” demand for gold skyrocketed. SJC gold and ring gold price In the world market, gold prices are being strongly supported by safe-haven demand, although the increase is somewhat restrained by a strengthening US dollar.
- Crude Oil: Fears of supply disruptions in the Strait of Hormuz have pushed oil prices higher. Oil stocks have been the focus of the stock market. The market is closely watching any military moves and inventory data from the US.
- Foreign exchange (Forex): Copper USD USD fell slightly in this morning's trading session (June 18) due to profit-taking pressure, but still maintained its role as the leading safe-haven currency. Investors are flocking to the USD, putting pressure on other currencies.
- Stock: Risk-off sentiment is gripping markets, with Asian and European stock indexes expected to see sharp declines as investors flee risky assets.
Quick Summary & Technical Perspective
| Element | Analysis & Forecast |
|---|---|
| Geopolitics | Deciding factor number 1. Any military news will have an immediate impact on prices. |
| Yellow | Uptrend. In a tug-of-war between safe-haven demand and USD strength. |
| Oil | Extreme volatility. It all depends on the development of the conflict and the risk of a blockade of Hormuz. |
| USD | King of currencies. Despite technical corrections, the main trend remains bullish. |
| Stock | Downtrend. Prioritize defense, avoid bottom fishing when the situation is unclear. |
Strategy For Investors
- Gold & Oil: These are the two assets that benefit the most. Strategic priorities “buy on dips”. It is necessary to place tight stop-loss orders to manage risks in the face of unpredictable fluctuations.
- Forex: Focus on trading currency pairs that contain USD. Wait to sell risky currencies (like AUD, NZD) and buy USD, JPY or CHF on bad news.
- Stock: Reduce stock weight, especially in sectors sensitive to economic cycles. Consider defensive stocks (electricity, water, pharmaceuticals) or oil and gas stocks that benefit. Absolutely do not use margin (leverage) at this time.
The situation is changing hourly. Stay tuned. Livetrade Pro to update information quickly and accurately, thereby making wise investment decisions.
