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The local governor said an oil pipeline in Primorsk, a Baltic port in Russia, was damaged in a Ukrainian drone attack.On April 5th, Planet Labs, a San Francisco-based remote sensing satellite data company, announced on April 4th that it would indefinitely suspend the release of satellite imagery of Iran and conflict zones in the Middle East, at the request of the U.S. government. Planet Labs announced the decision in an email to its clients, stating that the U.S. government had instructed all satellite imagery providers to indefinitely cease providing imagery of the conflict areas. Last month, Planet Labs had already extended the imagery release delay from four days to 14 days; this new restriction is a further escalation of measures aimed at preventing adversaries from using the imagery to attack the United States and its allies.On April 5th, German Foreign Minister Waldfol called on the EU to abolish the principle that decisions require unanimous consent from all member states in order for the EU to "truly grow." According to German sources on April 4th, Waldfol proposed abolishing the principle of unanimous consent in foreign and security policy formulation before the next European Parliament elections, so that the EU can "better act internationally and truly grow." Regarding the reasons for this suggestion, Waldfol said, "All our experiences in recent weeks regarding aid to Ukraine and sanctions against Russia show that this should be done." Since the escalation of the Ukraine crisis on February 24, 2022, Hungary has frequently disagreed with most EU countries on its policies towards Russia and Ukraine, opposing sanctions against Russia, Ukraines accession to the EU, and the provision of military aid to Ukraine. On March 19th of this year, Hungarian Prime Minister Viktor Orbán blocked a €90 billion aid loan from the EU to Ukraine at the EU summit.On April 5th, Hong Kong Financial Secretary Paul Chan published a blog post summarizing Hong Kongs economic outlook for the first quarter of 2026. Chan stated that with the first quarter of 2026 just concluded, the global situation remains complex and volatile, with the shadow of conflict in the Middle East continuing to weigh on market sentiment. Dragged down by external factors, the Hong Kong stock market experienced a correction, with the Hang Seng Index falling by approximately 2% year-to-date. However, trading remained active, with the average daily turnover in the first two months exceeding HK$260 billion, a year-on-year increase of 17%. Entering March, market activity further intensified, with the average daily turnover of Hong Kong stocks exceeding HK$300 billion, an increase of over 8% compared to the same period last year. This reflects investors increased asset allocation in Hong Kong amidst uncertainty, not only viewing Hong Kong as a reliable safe haven for funds but also benefiting from the stable growth of the mainland economy and the large number of high-quality companies listing in Hong Kong, providing them with numerous investment opportunities.On April 5th, Hong Kong Financial Secretary Paul Chan Mo-po published a blog post stating that Hong Kongs IPO market continued its strong performance from last year in the first quarter of this year. As of March 27th, the amount raised exceeded HK$103 billion, ranking first globally; including subsequent financing, the total amount raised was approximately HK$237 billion. More importantly, an increasing number of companies listing in Hong Kong are from emerging industries—artificial intelligence, semiconductors, robotics, autonomous driving, and biotechnology. Currently, there are over 500 applications waiting to list in Hong Kong. It can be said that as the external environment becomes increasingly uncertain, more companies see Hong Kong as an important window for financing and overseas expansion.

June Gold Buyers May Face Difficulties at $1987.60

Larissa Barlow

Apr 14, 2022 10:14

The market's strength is being fueled by demand for a hedge against rising inflation during the Russia-Ukraine conflict, lessening pressure from expectations of an aggressive US interest rate hike, and the US Dollar's intraday reversal top.

 

June Comex gold futures are currently trading at $1982.70, up $6.60 or 0.33 percent from their previous close. The SPDR Gold Shares ETF (GLD) is currently trading at $184.66, up $0.89 or 0.48 percent from its previous close.

 

Gold is regarded as an inflation hedge and a hedge against geopolitical concerns. However, higher interest rates in the United States would increase the opportunity cost of storing non-yielding bullion and strengthen the dollar against which it is valued.

 

However, the price action shows that gold buyers are seeking insurance against inflation and are not very concerned about opportunity costs at the moment. Despite all of the Fed's hawkish rhetoric and anticipation for aggressive rate hikes, we have yet to witness a shift in the direction of inflation.

 

Gold is likely to remain underpinned for the foreseeable future as long as the inflation arrow continues to point upward and the Ukraine war continues.

 

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Technical Analysis of the Daily Swing Chart

According to the daily swing chart, the primary trend is upward. A move over the intraday high of $1985.50 reaffirms the uptrend. A break of $1916.20 will revert the major trend to the downside.

 

On the upside, the retracement zone between $1987.60 and $2009.90 is the nearest objective.

 

On the downside, the long-term Fibonacci level at $1958.70 serves as the initial support, followed by the short-term 50% level at $1932.90.

Technical Forecast for the Daily Swing Chart

The June Comex gold futures market's path through Wednesday's close is likely to be dictated by trader reaction to the 50% level at $1987.60.

Scenario of Bullishness

A sustained move above $1987.60 will signal that buyers are present. This could provide the necessary momentum for a test of the Fibonacci level at $2009.90. This is a trigger point for an upside acceleration.

Scenario of the Bear

A persistent decline below $1987.60 indicates the existence of sellers. They intend to attempt the formation of a secondary lower top. This, if successful, might result in a break into $1958.70.