Taiwan tensions rise, Dow falls and Nvidia keeps the S&P alive

Taiwan military is on high alert, scrambling jets and preparing their navy in response to China’s growing presence surrounding the island. Many are commenting that China’s positioning is a response to Taiwan’s newly elected president William Lai. The effects of this rising tension are yet to be felt on sharemarkets, however we’re thinking that as events unfold in this region, the world’s leading producer of computer chips may well have to immediately stop production (specifically Nvidia GPUs which are the backbone of AI). With large scale advanced chip production decades away for the United States, Taiwan is extremely important in the World’s race towards AI supremacy.

The Dow tumbled more than 600 points yesterday, giving many investors the ‘jitters’ for what is about to unfold.

Nvidia released their earning report yesterday, positioning them as the Worlds’s 3rd biggest valued company. Growing from a market capitalisation of 418B 2 years ago, Nvidia is now valued at 2.86T. And with tensions escalating quickly in Taiwan, it doesn’t take a genius to see what is happening.

Gold, Silver, the US500 and the ASX200 have all reacted poorly to the above news. All have withdrawn over the past days as investors sense a conflict that may well impact the World in a very economic way. 

Enjoy today’s forecasts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.

Technical indicators – Monthly Projections

 Summary for Monthly Forecast: Strong Buy

*Not financial advice, please do your own research prior to any investment decisions you make.