Worries across the Western hemisphere have been on the rise that China’s Xi is on a mission to redraw a geopolitical map with India’s PM Modi and Russia’s President Putin, alongside other leaders, in an act of defiance, fearing that the world order created by the US will soon be challenged by a fierce coalition, dubbed the Global South.
Shifts and cracks in the global world order have been evident over the past decade, but became more prominent over the past few years, with the tighter reinforcement and development of economic ties between the BRICS nations, that vowed to shore up strength and compete against the imperialist influence, primarily of US, but also broadly speaking, the western world, by outright denouncing the unfair practices held against them and seek alternative ways to circumvent the problem and break their shackles.
Ultimately these events widened the rift between east and west and preliminarily created what we now call a multi-fractured, multipolar world, with the US-held dominance facing incremental pressure.
The latest show of force came from Beijing earlier today where the People’s Liberation Army (PLA) flamboyantly advertised its military might, at its first parade in six years, showcasing the numerous toys in its arsenal. Hypersonic missiles, anti-drone guns, stealth fighters, tanks and 10,000 soldiers (a tiny sliver of PLA’s massive 3 million + active-duty head count) marched through the Tiananmen Square for the 80th anniversary of the end of the Second World War.
When President Xi took the stand, he underscored that China will never be intimidated by any bully and delivered a clear message to the West emphasizing that humanity faces a critical choice between « peace or war, dialogue or confrontation, and win-win outcomes or zero-sum games. »
President Trump shortly after the speech went online and accused President Xi of “conspiring against the US”, whereas other western leaders sat in silence, remaining muted, adopting a cautious stance.
Technical Analysis
Gold Chart – The bullion snaps into fresh record highs on heightened safe haven demand
Resistance: 3600 (R1), 3650 (R2), 3700 (R3)
Support: 3500 (S1), 3435 (S2), 3365 (S3)
