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On May 12, a senior U.S. Department of Defense official estimated the latest cost of the war with Iran at approximately $29 billion, an increase of about $4 billion from an estimate made less than two weeks earlier. Acting Comptroller General Jules Hearst told a House Appropriations Subcommittee on Tuesday that the total cost of the war is "close to $29 billion," due to the additional operational costs of maintaining U.S. military deployments in the Middle East and the costs of updating equipment repair and replacement. This figure is about 16% higher than his estimate of $25 billion when he testified before the House Armed Services Committee on April 29. Hearst also hinted that the cost figure may continue to change in the future.A spokesman for Iran’s Ministry of Defense warned that if its enemies do not accept Iran’s demands through diplomatic means, they should be prepared to “fail again” in any future confrontation.New York City Mayor Mamdani has cancelled the planned increase in New York City property taxes in the revised budget.On May 12th, Futures News reported that, according to foreign media, German analysis firm Oil World stated on Tuesday that EU canola production is projected to increase to 20.97 million tons in 2026/27 from 20.52 million tons in 2025/26, while imports will decrease to 6.5 million tons from 6.9 million tons this year. The firm forecasts Canadian canola production at 21.4 million tons in 2026, down from 21.8 million tons in 2025/26. Canadian canola exports are expected to decrease to 7.6 million tons in 2026/27 from 8.3 million tons this year. Global biodiesel production is projected to increase to 67.1 million tons from 61.3 million tons in 2025, with EU biodiesel production rising from 14.9 million tons to 15.3 million tons.On May 12, local time, US President Trump stated that the conflict with Iran does not need to be resolved hastily. In an interview, Trump claimed that Iran is facing the prospect of having its revenue sources cut off. Trump also stated that he is confident he can prevent Iran from developing nuclear weapons, saying, "Its just a matter of time."

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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