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On Thursday, June 25, the Hang Seng Index opened down 23.68 points, or 0.1%, at 23,388.5 points; the Hang Seng Tech Index opened up 18.25 points, or 0.41%, at 4,497.27 points; the H-share Index opened down 7.48 points, or 0.1%, at 7,757.49 points; and the Red Chip Index opened down 17.96 points, or 0.47%, at 3,840.2 points.Hong Kong stocks opened lower, with the Hang Seng Index down 0.1% and the Tech Index up 0.41%. Zhipu (02513.HK) rose nearly 7%, Sunny Optical Technology (02382.HK) rose over 5%, and MINIMAX-W (00100.HK) rose over 4%.Bank of Japan board member Naoki Tamura: Controlling inflation will help prevent future demand declines and economic recession.June 25 – The Consulate General of the Peoples Republic of China in Sapporo issued a reminder to Chinese citizens in its consular district to be vigilant against aftershocks. According to the Japan Meteorological Agency, a magnitude 6.9 earthquake struck off the coast of Iwate Prefecture at approximately 7:30 a.m. Japan time on June 25. The Consulate General reminds Chinese citizens in its consular district, especially those in Aomori and Iwate prefectures, to be highly alert to aftershocks and secondary disasters, to closely monitor earthquake updates and disaster prevention information through television, the internet, and radio, and to follow local government instructions for prevention and evacuation. The Consulate General also advises Chinese citizens in its consular district to enhance their self-protection awareness, prepare for daily disasters, confirm nearby evacuation routes and locations in advance, and stockpile appropriate emergency supplies such as drinking water, emergency food, medicine, helmets, and whistles.Hang Seng Index futures opened 0.01% higher at 23,392 points, a discount of 20 points.

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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