Tsunegi Takaki? (likely a name) "Weekly Gold Market Outlook" June 13, 2022 issue

This is a Gold Market Outlook report written weekly by Takashi Kabutomaki, the President and CEO of Investment Daily Co., Ltd., a renowned expert in cycle analysis.

------------------------------------------------------------------

Last week's New York Gold Price closed at $1,875.50 per ounce (near-term), up $25.30 from the previous week. The week’s high was $1,879.60 on June 10, surpassing the previous week’s high of $1,878.60, marking a four-week streak of new highs. However, on the 10th the week's low touched $1,826.50, which was below the prior week’s low. On a daily basis, the chart showed a mix of strength and weakness, but psychologically, the impact of the CPI announcement on the 10th appeared strong. Below, I summarize how gold reacted to economic indicators based on Reuters news.

On the 10th, spot gold rebounded amid volatile trading. With the rise in the U.S. Consumer Price Index (CPI), expectations grew that the Fed would accelerate rate hikes, drawing attention to economic risks. May CPI showed strong gains, leading to speculation that the Fed would continue a substantial 0.5% rate hike through September. This caused gold to briefly hit $1,824.63, its lowest since May 19. However, when the University of Michigan’s June sentiment index (preliminary) fell to a record low due to rising gasoline prices, gold quickly reversed as investors anticipated the impact on the economy. Independent New York metal trader Tai Wong suggested next week’s gold market would be influenced by the FOMC. Standard Chartered analyst Kis Cooper, considering the rate outlook and a soft spot market, analyzed that gold would be “surprisingly resilient,” noting concerns that inflation could outpace the pace of rate hikes.

In short, the focus is on whether the inflation rate will outrun the pace of rate hikes; ultimately, if inflation is expected to be tamed, gold would show weakness to rate hikes. If inflation prevails, gold could surge...

Please see the PDF file for the continuation.

【Takashi Kabutomaki – Profile】

Graduated from Kwansei Gakuin University, Faculty of Economics. In 1995, he partnered with the globally renowned American market analyst Raymond A. MeriMan (note: name transliteration kept as in original), publishing the domestic market cycle and astrology reports for the first time in Japan. He is renowned for cycle and astrology-based market analysis. President and CEO of Investment Daily Co., Ltd.; President and CEO of Investment Daily Publications Co., Ltd.; Director of Wakabaya FX Associates Co., Ltd.; Member of the Japanese Technical Analysts Association; Editor-in-Chief of Investment Daily α.

* Please make final investment decisions at your own risk.

* Unauthorized copying or distribution of this report is a breach of contract. If such breaches are discovered, legal action may be taken, and distribution could be terminated even within your subscription period. Thank you for your understanding and cooperation.

* This report does not guarantee future prospects or profitability. Traders and readers should trade at their own risk. The authors and publisher of this report bear no responsibility for the decisions of market participants. Regardless of the instrument, whether physical, futures, or options, trading involves high risk.