EUR/USD 1.13991
-0.194%
Gold 3975.74
-0.791%
Oil 68.580
-1.876%
USD/JPY 162.644
0.050%
GBP/USD 1.32503
-0.072%
GBP/JPY 215.511
-0.021%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
PMI data showed that UK manufacturing activity slowed in June, despite a boost in output as companies stockpiled goods in anticipation of rising prices and supply chain disruptions caused by the Middle East conflict. The final UK manufacturing PMI fell to 52.5 in June, down from the preliminary reading of 53.1 and Mays 53.9. A reading above 50 indicates expansionary activity. The survey showed the output sub-index rose to 52.6 (previous reading 52.2), the highest level since September 2024. However, growth in new orders slowed significantly, consistent with the findings of a survey released last week by the Confederation of British Industry. S&P analyst Rob Dobson said, "UK manufacturing ended the second quarter on a positive note. Whether this momentum can be sustained is increasingly being watched. Manufacturers are currently benefiting from strategic stockpiling by customers who are looking to hedge against supply chain disruptions and anticipated price increases. But the slowdown in the growth rate of new order intake suggests that this boost is beginning to wane."July 1st - Investinglive reported that European Central Bank (ECB) Governing Council member Nagel stated that all options remain open for interest rate decisions in July and September, meaning future decisions will remain highly dependent on various data scenarios. Given the declines in inflation data from France, Germany, and Italy, todays Eurozone inflation data is unlikely to show an unexpected increase. Therefore, the possibility of an ECB rate hike in July is extremely low. Nagel also reiterated that the ECBs June rate hike should not be interpreted as a "precautionary measure." In other words, this decision was not merely a precautionary measure to address future inflation risks, but rather based on the central banks assessment of the current economic situation and inflation trends.The onshore yuan closed at 6.7935 against the US dollar at 16:30 on July 1, down 83 points from the previous trading day.The final reading of the UK manufacturing PMI for June was 52.5, below the expected 53.1 and the previous reading of 53.1.France will hold the first round of its presidential election on April 18, 2027.

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.

 

image.png 

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.

Suggestion