EUR/USD 1.16118
0.035%
Gold 4341.43
0.237%
Oil 75.367
-0.579%
USD/JPY 160.330
-0.072%
GBP/USD 1.34256
-0.003%
GBP/JPY 215.259
-0.073%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 17th, Jarden economists warned that the Reserve Bank of Australia (RBA) cannot accelerate the natural decline of inflation by adjusting interest rates. In their research report, they pointed out that the composition of inflation is more important than its level, and they expect core inflation to remain above 3% until the second half of 2027. They noted that the main reason for the significantly higher-than-expected inflation rate is not an overheated domestic economy, but rather related to fuel costs, which are beyond the control of officials or politicians. This situation should ease as the situation in the Middle East normalizes, but Jardens core concern is the extent to which cost pressures will affect Australian goods and services.June 17th - According to a Wall Street Journal survey of economists, 10 out of 12 believe the Philippine central bank is likely to raise its policy rate by 25 basis points to 4.75% on Thursday. Economists at Capital Economics noted in a report that the Philippines is one of the Asian economies most severely affected by the energy shock, and inflation has exceeded the central banks target range in recent months. The firm added that while inflation concerns may prompt the central bank to raise rates, it will also consider economic weakness in its decision-making. Two economists predict a larger rate hike, reaching 50 basis points. HSBC analyst Aris Dacanay believes the rate hike could be even larger given the central banks price stability target.Gold rose in early Asian trading on June 17th. Zaheer Anwari, CEO of The Revacy Fund, stated that improved market confidence, driven by easing concerns about energy supply disruptions, inflation, and interest rates, created a more favorable environment for gold. Traders are closely watching the decisions of several central banks this week. While the Bank of Japans rate hike supported Japanese bond yields and may limit golds upside, investors expect the Federal Reserve to keep rates unchanged. If the Feds updated economic and inflation forecasts remain positive, it could further boost gold prices. Furthermore, continued central bank position building will provide strong structural support. Anwari believes gold prices will find stable support around $4,000 per ounce.Goldman Sachs: We expect liquefied natural gas flows to return to normal by the end of July, later than our previous expectation of the end of June.On June 17, the Peoples Bank of China (PBOC) announced that it will issue the sixth tranche of central bank bills for 2026 through the Hong Kong Monetary Authoritys Central Moneymarkets Unit (CMU) bond bidding platform on June 22, 2026 (Monday). The sixth tranche of central bank bills has a maturity of 6 months (182 days), is a fixed-rate interest-bearing bond, and will be repaid with principal and interest at maturity. The issuance amount is RMB 40 billion, the interest accrual date is June 24, 2026, and the maturity date is December 23, 2026. The maturity date will be postponed if it falls on a public holiday.

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