EUR/USD 1.17941
0.100%
Gold 4971.49
-0.093%
Oil 65.186
0.448%
USD/JPY 154.885
0.041%
GBP/USD 1.34954
0.026%
GBP/JPY 209.028
0.075%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The Indonesian rupiah fell to its lowest level against the US dollar since January 22, last trading at 16,915 rupiah to the dollar.On February 19th, China submitted its "Position Paper on WTO Reform under the Current Situation" to the World Trade Organization (WTO). The head of the WTO Department of the Ministry of Commerce provided an interpretation of the position paper. The overall position outlines Chinas general understanding of the WTO and its basic attitude towards WTO reform. The position paper states that the WTO provides open, non-discriminatory, stable, and predictable institutional guarantees for economic globalization. While the multilateral trading system has been impacted by unilateral tariff measures, and trade tensions have intensified, WTO rules and mechanisms remain a crucial barrier against trade turmoil. Unilateralism and protectionism are not the solution; all parties should address the real challenges brought about by economic globalization through multilateral cooperation, domestic reforms, and inclusive and mutually beneficial development. The position paper emphasizes that economic globalization is an unstoppable historical trend. WTO reform should aim to strengthen multilateral trade governance, uphold the most-favored-nation (MFN) treatment as the cornerstone of the WTO rules system, and place development at the center of the WTO reform agenda. It should address long-standing unresolved issues while exploring and formulating new rules for the future.Reserve Bank of New Zealand Assistant Governor Silk: Even with a small rate hike, interest rates will only be near the bottom of the neutral range.Reserve Bank of New Zealand Assistant Governor Silk: Maintaining an accommodative policy for some time is in line with reality.Sources say Germany is considering purchasing more F-35 fighter jets from the United States.

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