EUR/USD 1.17406
0.208%
Gold 3885.61
0.761%
Oil 60.525
0.064%
USD/JPY 147.454
0.139%
GBP/USD 1.34825
0.330%
GBP/JPY 198.809
0.471%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 5th, sources familiar with the matter revealed that OPEC+ will meet on Sunday and plan to further increase oil production starting in November. Saudi Arabia is pushing for a larger increase to regain market share, while Russia is suggesting a more modest hike. Two sources said no final decision has been made yet, with one predicting the increase will remain at 137,000 barrels per day (bpd), while the other believes a 274,000 bpd increase is more likely. Previous production cuts peaked in March at 5.85 million bpd. The cuts consist of three components: a voluntary 2.2 million bpd reduction, a combined 1.65 million bpd reduction by the eight member countries, and an additional 2 million bpd reduction by the group as a whole. The eight producers plan to fully lift the 2.2 million bpd portion of their production cuts by the end of September. By October, they had begun lifting the second 1.65 million bpd cut, initially increasing production by 137,000 bpd.On October 5, Vietnamese Finance Minister Nguyen Van Thang stated that Vietnams economy likely expanded by 8.22% year-on-year in the third quarter, driven by a 10% increase in manufacturing. Growth for the January-September period is projected to be 7.84%. Consumer prices are estimated to have risen by 3.38% in September. Vietnams mining sector has recovered, growing by 9.8% in the third quarter, while the services sector expanded by 8.54%. Despite the US imposition of a 20% tariff on export-reliant Vietnam, the Vietnamese government has set a target for economic growth of 8.3% to 8.5% for 2025.Sources say OPEC+ is ready to further increase oil production.Ukrainian President Zelensky: Ukraine was once again attacked by Russias coalition forces tonight, using more than 50 missiles and about 500 drones.Qatar set its November offshore crude oil price at a premium of $2.00 per barrel over the Oman/Dubai average; and its onshore crude oil price at a premium of $2.05 per barrel over the Oman/Dubai average.

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