EUR/USD 1.17495
0.059%
Gold 4762.80
0.906%
Oil 88.130
-1.699%
USD/JPY 159.218
-0.099%
GBP/USD 1.35192
0.089%
GBP/JPY 215.255
0.003%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Polish minister: The United States may postpone some missile deliveries.On April 22nd, it was reported that the UKs overall inflation rate rose in March, driven by increased energy prices. Monthly data showed an overall inflation rate increase of 0.7%, with transport prices being the main driver. Notably, transport prices rose 4.7% year-on-year, the largest annual increase since December 2022. Furthermore, fuel oil saw the largest increase, averaging 140.2 pence per liter in March, the highest level since August 2024. Meanwhile, diesel prices also rose sharply, averaging 158.7 pence per liter in March, the highest level since November 2023. Overall, motor fuel inflation reached 4.9% last month, the highest level since January 2023. Looking at core prices, the impact of the Middle East conflict will be more pronounced in the coming months. However, no such evidence has been found for March. Core annual inflation fell slightly to 3.1% in March, but inflation in the services sector remained a very stubborn area, rising to 4.5% from 4.3%.The yield on 40-year Japanese government bonds rose to 3.785%.April 22 – According to data released on Wednesday, the UKs annual CPI inflation rate rose to 3.3% in March from 3.0% in February, indicating that the Middle East wars have had an initial impact on prices. Prior to the US-Israeli action against Iran, the Bank of England stated that the UKs inflation rate was likely to approach its 2% target level in April. However, the Bank of England significantly raised its inflation forecast last month due to the energy price shock, predicting that the inflation rate would rise to around 3.5% by mid-2026. The International Monetary Fund predicted last week that the UKs inflation rate would peak at 4% in the coming months. However, most Bank of England interest rate makers stated that it is too early to judge the impact of the overall inflation rate rise on potential price pressures in the economy, as the current weak labor market may make it more difficult for workers to demand higher wages or for businesses to pass on higher costs to consumers.Ukraines top prosecutor: Russia has launched drones and missiles multiple times along flight paths near the Chernobyl nuclear power plant.

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