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On May 3, OPEC issued a statement announcing that the seven OPEC+ countries (Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman) will hold an online meeting on May 3, 2026, to review the global market situation and outlook. The seven participating countries decided to implement a production adjustment of 188,000 barrels per day, on top of the additional voluntary adjustments announced in April 2023. This adjustment will be implemented in June 2026. The seven countries will meet again on June 7.On May 3, local time, Russian Presidential Press Secretary Dmitry Peskov stated that if Ukraine is unwilling to reach an agreement, Russia will use sustained and intensified military action until a "victory" is achieved to force it to accept it. Peskov emphasized that achieving the goal through a peace agreement—namely, resolving the Ukrainian issue through negotiations—remains a priority for Russia. Peskov stated that despite facing a "serious energy crisis," Russias interests will be protected. He pointed out that Ukraines attacks on Russian oil infrastructure will trigger a greater oil shortage, while the resulting increase in fuel prices will actually boost the revenue of Russian companies and the national treasury.TankerTrackers: This is the second time Iraq has shipped fuel oil to Syria for export by sea. The first shipment was sent to Spain last week.TankerTrackers: According to Al Jazeera, Iraq is diverting fuel to Syria in search of reliable alternative oil export routes due to the closure of the Strait of Hormuz.Iranian Foreign Ministry: Iranian Foreign Minister Araqchi briefed the Omani Foreign Minister on Irans efforts to end the war.

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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