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On July 15th, it was reported that on July 14th local time, the U.S. Central Command announced that the U.S. military launched a new round of strikes against Iran at 3:00 PM Eastern Time (10:30 PM Tehran Time). The U.S. military is also preparing to reinstate a naval blockade against Iranian ports and coastal areas, which "officially took effect at 4:00 PM Eastern Time (11:30 PM Tehran Time)." Previously, on July 13th, the U.S. military announced a "third consecutive night" of strikes against Iran and would reinstate the naval blockade on July 14th Eastern Time. According to U.S. sources on July 13th, President Trump had formally notified Congress of the renewed conflict with Iran.U.S. Defense Secretary Hergsays will testify at a hearing on July 21.July 15th - The United States is advancing negotiations on an oil pipeline that would bypass the Strait of Hormuz and transport oil from Iraq to Syria, thereby reducing Irans future influence on global energy supplies. According to sources, Thomas Barak, the US Special Representative for Syria and Iraq, has convened officials from both countries, as well as businesses including Chevron, to discuss restarting a long-dormant pipeline from Iraq to the west coast of Syria. While several new route options are being considered, the talks focused on rebuilding the Kirkuk-Banias pipeline, which has been out of service for over two decades. A State Department official confirmed that the US government is supporting Iraq and Syria in repairing the pipeline between the two countries to broaden trade routes and expects US companies to play a significant role in its construction. Earlier on Tuesday, Trump met with the Iraqi Prime Minister at the White House and indicated that a "large-scale" new oil cooperation agreement would be announced this week or next.The Kuwaiti military reported intercepting one ballistic missile, five cruise missiles, and 33 drones since tonight. The Iranian attack damaged several important and civilian facilities, with some areas affected by shrapnel. A Kuwaiti naval vessel was attacked, injuring four service members who are currently in stable condition.The updated law stipulates that countries whose imports of Russian natural gas account for less than 15% of Russias total natural gas exports and which are taking significant measures to reduce such imports may be exempted.

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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