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MiniMax (00100.HK) shares continued their upward trend, with the gains widening to as much as 11% in early trading, breaking through the HK$1,000 mark.Ziyuanyuan (08223.HK), a Hong Kong-listed company, surged in early trading and is currently up 45.45%; it recently announced that it plans to issue 86 million subscription shares at a discount of approximately 9.09%.Popular Hong Kong tech stocks generally rose, with Zhipu (02513.HK) surging over 12%, Bilibili (09626.HK) rising over 4%, and XPeng Motors (09868.HK) gaining over 3%. JD Health (06618.HK), Xiaomi Group (01810.HK), and Kuaishou (01024.HK) all rose over 2%.March 10 – OCBC strategists stated that the pullback in energy prices from their highs has given Asian currencies a breather, but shifting geopolitical tensions keep risks two-way. Oil prices retreated after Trump indicated the Middle East conflict could end “soon” and the Strait of Hormuz would remain safe. He said, “Meanwhile, during this brief disruption, the US is providing political risk insurance to any oil tankers operating in the Gulf region.” A weaker dollar has revived carry trades in emerging markets, but markets remain tense. OCBC strategists Sim Moh Siong and Christopher Wong stated that the longer the Strait of Hormuz remains closed, the more oil production will be shut down. OCBC remains neutral on the dollar until clearer signs of de-escalation emerge.On Tuesday, March 10, the Hang Seng Index opened 331.83 points higher, or 1.31%, at 25,740.29; the Hang Seng Tech Index opened 99.07 points higher, or 2.0%, at 5,040.8; the H-share Index opened 95.09 points higher, or 1.11%, at 8,676.55; and the Red Chip Index opened 16.03 points higher, or 0.37%, at 4,327.77.

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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