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March 21 - As of 2:30 PM closing, the Shanghai Gold futures contract fell 1.22% to 1016 yuan/gram, the Shanghai Silver futures contract fell 1.77% to 17139 yuan/kilogram, and the SC Crude Oil futures contract rose 3.40% to 803 yuan/barrel.U.S. stocks continued their decline, with the benchmark index falling to an intraday low. The S&P 500 was last down 1.39%. On the news front, the U.S. is preparing for a possible deployment of ground troops to Iran.ECB Governing Council member Nagel: The ECB must take action when the second round of inflationary effects emerge.ECB Governing Council member Nagel: The higher the inflation and the longer the expectation remains above the target level, the greater the risk of a second round of effects.March 21 – According to CBS News, multiple sources briefed on the matter revealed that U.S. Department of Defense officials have made detailed preparations for the deployment of U.S. ground troops to Iran. Sources said that as Trump weighs options in a U.S.-Israeli-led conflict with Iran, senior military commanders have submitted specific requests to prepare for such options. Sources indicated that Trump has been considering deploying ground troops in the region. It remains unclear under what circumstances he would authorize the use of ground troops. When asked about ground troops in the Oval Office on Thursday, he told reporters, “No, I’m not going to deploy troops anywhere,” but added, “If I were to deploy them, I certainly wouldn’t tell you.” Two sources said the military has also held meetings to prepare for how to handle any Iranian soldiers and paramilitary personnel potentially detained during the operation should Trump decide to send U.S. ground troops, including where these Iranians would be sent.

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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