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Ukrainian energy company DTEK: Power supply has been restored to 240,000 households in Ukraines Odessa region after Russias overnight attack.According to a report from Guoxin Securities on the gold industry on October 11th, the current gold price surge is primarily driven by expectations of a Federal Reserve rate cut, geopolitical risks, and surging investment demand, signaling a new period of strength in the gold market. Regarding short-term investment recommendations, focus on event catalysts, such as the October Federal Reserve meeting minutes and US inflation data (an unexpected rebound in CPI could trigger volatility). In the short term, prices may fluctuate briefly above 3,800, with specific performance fluctuating depending on the data. Regarding medium- to long-term allocations, it is recommended to allocate 10%-15% of your portfolio to gold assets to hedge risk and increase diversification.According to a report from Guoxin Securities on October 11th, the current gold price surge is primarily driven by expectations of a Federal Reserve rate cut, geopolitical risks, and surging investment demand, signaling a new period of strength in the gold market. Regarding short-term investment advice, focus on event catalysts, particularly the October Federal Reserve meeting minutes and US inflation data (an unexpected rebound in CPI could trigger volatility).German Geoscience Research Center: A 5.8 magnitude earthquake occurred near the east coast of the Kamchatka region.On October 11, as of the end of August, the China Development Bank has issued 4.8 billion yuan in affordable housing loans since the 14th Five-Year Plan, supporting 74 projects and helping to build and raise 62,000 affordable housing units; issued 978.1 billion yuan in special loans for urban village renovation, supporting 816 projects, helping to build and raise 1.769 million resettlement houses, benefiting 942,000 households in urban villages; issued 40.7 billion yuan in "dual-use" public infrastructure construction loans, supporting 180 projects.

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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