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Futures News, December 12th: Overnight oil prices trended downwards, and news in the fuel oil market was bearish. Market trading was moderate, with downstream buyers purchasing only as needed and mainly for immediate needs. Refinery shipments were sluggish. It is expected that todays negotiations will remain generally stable, with some minor declines in individual cases.December 12th - It was learned today from the National Medical Products Administration that the "Three-Year Action Plan for Improving the Production Quality Management System of Cosmetic Enterprises (2026-2028)" has just been released. The regulatory authorities will help small and medium-sized cosmetic enterprises overcome difficulties such as insufficient compliance of raw materials and inconsistencies between production processes and registration documents, improve the quality management capabilities of key personnel, encourage provincial drug regulatory departments to formulate quality management review requirements adapted to digital production, promote systems such as "release from external warehouses," and explore the use of artificial intelligence and other means to assist in inspection and risk assessment.Uber (UBER.N) expects to offer self-driving taxi services in more than a dozen markets by the end of next year, and the company is discussing rules for the self-driving service with regulators.The White House: The Chairman of the U.S. Securities and Exchange Commission (SEC) will review all rules, regulations, guidelines, announcements, and memoranda related to proxy counsel.On December 12th, local time, when asked on December 11th whether the US action against Venezuela, following the seizure of the Venezuelan oil tanker, was still solely focused on the drug issue, US President Trump stated that the US response involved "far more than just drugs," and claimed that Venezuela was smuggling a large number of criminals into the US. Trump stated that the US was "taking strong action" and indicated that drug trafficking along the border had decreased by 92%. In his response, Trump further hinted that the US might escalate its operations, saying that "the operation will soon extend from the sea to the land," but did not provide specific details.

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.

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