EUR/USD 1.17791
0.041%
Gold 4500.11
-0.689%
Oil 57.055
0.405%
USD/JPY 156.291
-0.126%
GBP/USD 1.35062
0.025%
GBP/JPY 211.095
-0.099%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Ukrainian Foreign Minister Kuleba: Water supply has been restored in Kyiv and surrounding areas.Sudans Rapid Support Force (RSF): On Saturday, the RSFs air defense forces shot down a Turkish-made Bairaktar drone in the Brno region of South Kordofan province.The mayor of Moscow stated that three drones heading towards Moscow have been shot down. Emergency services are working at the crash site.December 27th - In recent months, the US government has escalated its military threats and sanctions against Venezuela, leading to the disruption of numerous international shipping routes and severe disruptions to maritime logistics. Venezuela is experiencing shortages of some medicines and medical equipment, with the prices of some life-saving drugs soaring to levels unaffordable for ordinary citizens. A reporter from CCTV visited a large pharmacy in the northeastern suburbs of Caracas, the Venezuelan capital. Local consumers can still purchase common medicines there, but some antibiotics are sold out. Furthermore, some emergency medicines and medical supplies are prohibitively expensive. For example, the only insulin injector sold there costs more than three times the price of similar products on the international market. It is understood that Venezuela relies on imports for 90% of its pharmaceutical raw materials, and medical equipment such as monitors and anesthesia machines are almost entirely dependent on overseas supplies.Ukrainian President Zelensky: The security guarantees provided by the United States will depend on what US President Trump is prepared to provide.

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