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The Hang Seng Index closed down 237.75 points, or 0.93%, at 25,413.12 on Monday, September 7; the Hang Seng Tech Index closed down 42.09 points, or 0.92%, at 4,527.71 on Monday, September 7; the H-share Index closed down 125.3 points, or 1.46%, at 8,429.73 on Monday, September 7; and the Red Chip Index closed down 37.01 points, or 0.88%, at 4,176.45 on Monday, September 7.September 7th - Chinas gold reserves at the end of August were 76.73 million ounces (approximately 2,386.57 tons), an increase of 650,000 ounces (approximately 20.22 tons) month-on-month. This marks the 22nd consecutive month that the Peoples Bank of China has increased its gold holdings.Iranian Foreign Ministry spokesman Bagaei said an agreement on a temporary passage through the Strait of Hormuz will be reached in the coming days.On September 7th, the Shanghai Council for the Promotion of International Trade (CCPIT) announced arrangements for the Beijing and Shanghai Auto Shows: To properly address industry concerns, the Shanghai CCPIT and the automotive industry CCPIT, after multiple rounds of consultations, held a special coordination meeting on September 3rd regarding the Beijing and Shanghai Auto Shows. Adhering to the principles of frankness, pragmatism, prioritizing the overall situation, and mutual benefit, both sides fully discussed matters such as the standardized organization and collaborative cooperation of the two auto shows, reaching important consensus. Both sides agreed to continue maintaining the existing pattern of holding comprehensive auto shows every other year. The Beijing Auto Show, to be held in Beijing in March 2027, will be presented as a specialized themed exhibition. This arrangement continues the long-established and mature exhibition mechanism, which is conducive to coordinating industry resources, avoiding overlapping exhibition functions, and better serving the high-quality development of the automotive industry.According to RIA Novosti, Russia has stated that favorable conditions for dialogue with the United States on strategic stability have not yet been established.

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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