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The Reserve Bank of Australia will release its interest rate decision and monetary policy statement in ten minutes.The National Bank of Kazakhstan reported that net gold and foreign exchange reserves in July totaled $61.724 billion (a 3.2% increase month-on-month).On August 11th, futures market news reported that London spot gold prices broke through the $4400/ounce mark, accumulating a nearly 10% increase in the last five trading days. UBS stated in a research report on August 10th that if gold prices can maintain above $4200-$4250/ounce after breaking through the key resistance level of $4250/ounce, a short-term reversal will be confirmed, and the previous resistance zone will become an important support zone. 1. Some analysts also stated that the logic of a medium- to long-term upward trend in gold and silver prices remains unchanged. With factors such as gradually declining US inflation, weakening macroeconomic headwinds, limited upside potential for US Treasury real interest rates, and the ongoing global de-dollarization process, the gold "bull market" will continue. 2. Recently, Ashok Varadhan, co-head of global banking and markets at Goldman Sachs, conveyed a simple message to investors worried about rising interest rates: continue holding assets, dont withdraw! Varadhan said, "I dont think (the Fed) will raise interest rates in the second half of this year; interest rates will remain stable."On August 11, it was learned from the earnings call of AIchip Yuanzhis 2026 semi-annual report that the companys next-generation high-performance AI chip has been tape-out, with significantly improved computing power specifications. It is also equipped with high bandwidth and supports two-chip or four-chip cascading, which can realize high-performance inference of full-capacity large models at the edge.Samsung Electronics shares rose 5%.

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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