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The SC crude oil futures contract saw its intraday gains narrow to 2.00%, currently trading at 596.50 yuan per barrel.On June 2nd, it was announced that the revised "Shenzhen Municipal Measures for the Supply and Management of Industrial and Other Industrial Land," spearheaded by the Shenzhen Municipal Planning and Natural Resources Bureau, will come into effect on May 7th, 2026. The measures aim to strengthen land use guarantees for major industrial projects, standardize the management of industrial land supply, and improve the level of efficient and intensive land use. The "Measures" represent a significant achievement in Shenzhens implementation of comprehensive reform pilot programs and the deepening of market-oriented allocation of factors of production. They also serve as an institutional exploration to address the tight land constraints of a megacity and enhance the management capacity of industrial land.On June 2nd, the Zhengzhou Housing Provident Fund Management Center and the Zhengzhou Housing Security and Real Estate Administration Bureau issued a notice to launch a service allowing the pre-withdrawal of housing provident funds to pay for the purchase of existing homes. Zhengzhou housing provident fund contributors who intend to purchase existing homes in Zhengzhou (the eight urban districts) and meet the eligibility requirements for housing provident fund withdrawal can withdraw the housing provident funds of the buyer, their spouse, and co-owners after the "Zhengzhou Existing Housing Sales Contract" is filed. The withdrawn funds will be transferred to the supervision account specified in the "Zhengzhou Existing Housing Transaction Settlement Fund Supervision Agreement".Hong Kong-listed AI concept stocks opened slightly higher, with Dexter-B (02526.HK) up 7.77%, Pony.ai-W (02026.HK) up 3.68%, and 51Vision (06651.HK) up 1.47%.On Tuesday, June 2, the Hang Seng Index opened down 3.11 points, or 0.01%, at 25,395.07; the Hang Seng Tech Index opened up 30.91 points, or 0.62%, at 4,995.83; the H-share Index opened up 3.44 points, or 0.04%, at 8,511.31; and the Red Chip Index opened down 5.23 points, or 0.12%, at 4,422.19.

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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