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The UKs three-month ILO unemployment rate for March, the number of unemployment benefit claims for April, and the unemployment rate will be released in ten minutes.Market sources say Samsung Electronics and the union will resume negotiations this afternoon, with two issues still at odds.On May 19th, Nikko Securities economist Yoshimasa Maruyama stated that considering the recent momentum in the Japanese stock market and the potential trend shift driven by a stable, long-term government, the Nikkei index could reach around 65,000 points by the end of the year. Maruyama predicts the index could reach approximately 73,000 points by the end of 2027 and around 80,000 points by the end of 2028. However, he pointed out, "If the conflict in the Middle East escalates, and it doesnt just lead to rising oil prices, but evolves into a serious supply constraint problem, the expected trend of asset prices, including stocks, could be revised downwards."On May 19th, futures market news reported that recent rainy weather in producing areas has limited corn shipments for most traders, leading to a temporary tightening of effective supply. Some companies have slightly raised prices to encourage purchases. While some traders in producing areas still have sales needs after the weather improves, downstream companies are focusing on the new wheat harvest and awaiting relevant policy grain auctions, resulting in weak enthusiasm for corn purchases. However, the trading sector is supported by costs and has limited acceptance of low prices; therefore, mainstream market prices are expected to remain stable in the near term.According to data from Zhuochuang Information, as of the close of trading on May 18th, the wholesale-retail price difference for gasoline and diesel from major domestic suppliers was 3376 and 2401 yuan/ton, respectively, while the difference between wholesale and retail prices for gasoline and diesel from Shandong local refineries was 3513 and 2608 yuan/ton, respectively. Since the Middle East conflict, the domestic wholesale-retail price difference for gasoline and diesel narrowed to around 300 yuan/ton. Subsequently, due to the increase in retail price limits, but a decline in wholesale market prices, the wholesale-retail price difference range widened. In the short term, international oil prices are expected to remain strong, and there is still an expectation of an increase in the retail price limit for refined oil products in this round. However, the momentum for wholesale prices to follow suit is limited, and the wholesale-retail price difference is expected to remain at a high level.

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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