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The onshore yuan closed at 6.7674 against the US dollar at 16:30 on July 27, up 70 points from the previous trading day.Hong Kongs trade balance in June was -HK$51.952 billion, compared to -HK$44.2 billion in the previous month.Hong Kongs exports grew at an annual rate of 53.4% in June, compared with 40.80% in the previous month.Hong Kongs imports rose 45.4% year-on-year in June, up from 42.00% in the previous month.July 27th, Futures News: Key issues such as Irans control of the Strait of Hormuz and its missile and nuclear programs remain unresolved, and any ceasefire is highly likely to be temporary, leaving geopolitical risks still volatile. While international oil prices have recently seen a wider decline, the possibility of unforeseen black swan events cannot be ruled out. The fundamentals of refined oil products remain weak, and with the end of the month approaching, major oil companies are facing increased sales pressure, leading to a decline in inflated prices. However, the continued policy of major oil companies limiting sales and the high raw material costs for local refineries will provide support for the bottom prices of gasoline and diesel. It is expected that domestic gasoline and diesel prices will fall and then stabilize this week, mainly fluctuating in line with crude oil trends. Due to short-term emotional disturbances in international oil prices, the recent correction is temporary, significantly increasing the uncertainty surrounding the future trend of refined oil products.

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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