Market Updates

Precious metal prices were mixed last week, with silver continuing its recent rally, now trading back above USD $23oz, while gold had a small pullback (-1%), consolidating the recent spike that saw it push back above USD $1800oz five trading days ago.

It’s been another positive week for the precious metal complex, with gold rallying above USD $1800oz, up 3%.

Financial markets continued to trade in a relatively tight range, as markets await a fresh catalyst as head into the final month of the year.

Markets were relatively calm in the past week, with bond yields continuing to ease and the US dollar (USD) continuing to ease, while equity markets and indeed the precious metal market have consolidated recent gains.

The surge in gold and silver prices that we’ve seen over the past five trading days has excited precious metal bulls, with signs that the two-year corrective cycle the metals have been in is now over, with higher prices ahead.

Central bank policy decisions dominated the financial landscape this week, headlined by the US Federal Reserve, who raised benchmark interest rate by 0.75% to 3.75-4.00% at their latest Federal Open Market Committee (FOMC) meeting.

Markets have rallied over the last five trading days, with equities, precious metals, cryptocurrencies, commodities and large parts of the fixed income universe all seeing price rises.

Gold prices have continued to fall in the past week, with the precious metal looking like it may test the USD $1600oz level at a minimum in this corrective cycle. Since the intra-year high hit in early March this year, gold has largely been in free-fall, and has now fallen by almost exactly 20% in USD terms.

Markets have been in correction mode for most of this week, after stronger than expected jobs data out of the United States on Friday 7th October, which showed the unemployment rate dropping to 3.5% strengthened market expectations for a 0.75% interest rate by the US Federal Reserve when they meet next week.

Financial markets staged a huge rally over the past few trading days, as investors treated recent central bank activity as a sign that the rapid pace of interest rate increases deployed across developed markets in 2022 may soon ease.

Asset markets suffered some of their wildest swings over the past five trading days, as a widely ridiculed mini budget delivered by Chancellor of the Exchequer Kwasi Kwarteng in the United Kingdom sparked a sharp sell-off in the UK government bond (Gilt) market, and in the British Pound (GBP).

Interest rate increases have dominated financial market headlines and investor positioning this past week, as central banks around the world continued their policy tightening path.

It’s been another tough week for global asset markets, as US inflation data, which came in hotter than expected, sparked a widespread sell off, with stocks, cryptocurrencies and precious metals all falling after the inflation results were released.

Gold prices bounced off key support levels near USD $1680 oz this past week, trading up toward USD $1,730oz at one point, while silver was an even stronger performer, up 4% in USD terms over the last five trading days.

At last week’s Jackson Hole Symposium, Federal Reserve (Fed) Chair Jerome Powell took just 8 minutes to confirm that the Fed is unlikely to pare back the aggressive pace of interest rate hikes they’ve implemented in the last few months.

Investors brace for Fed announcement while markets lull: all eyes will be on U.S. Federal Reserve Chair Jerome Powell’s speech for any indication of the Fed’s interest rate and general moves in this half of the financial year.

With Australians’ earnings not matching rising inflation, it is more important than ever to consider investment options that can hedge existing wealth against volatile economic climates.

Following new data on the US Consumer Price Index, we investigate the influences on its decrease and analysts’ projections on the Fed’s inflation management strategy, as well as assessing the ABS’s report on the Australian Consumer Price Index.

Following last week's late strength, gold rose a further 2.07% this week, with all precious metals following suit and Palladium showing a steadying pace. This week, we look to the World Gold Council to wrap up Q2 and H1, with a strong focus on gold demand.

Gold, silver and platinum are all up, despite a tough month of consistent lows. The national median house price has fallen for the first time in two years, whilst the ECB follows its interest hike with the announcement of a new strategy.

Gold maintains its position as a safe haven for wealth in times of concern and with new quarterly CPI data being released next week, investors and homeowners are rushing to add gold and precious metals to their portfolios as a hedge against rising inflation and increasing interest rates on the housing market.

Thursday’s trading session saw the yellow metal shed US$25 per ounce, with gold nearly 2% lower overall for the week. Inflation in the US shows no signs of slowing, with the market pricing in a 1% hike from the Federal Reserve Bank this month. The Euro reached parity with the US dollar, further putting pressure on gold as greenbacks become the preferred safe haven investment.

Gold’s dramatic sell-off this week has brought out the bargain hunters. A strong US dollar continues to put pressure on gold, as the Euro gets closer to parity this week…

Spot gold is marginally lower this week. The yellow metal has been largely forming a consolidation pattern over the past two weeks. Federal Reserve Bank rate increases are putting pressure on gold but US Treasury yields dipped lower, providing some relief.

Gold is down overall this week, lower by 0.66% to US$1,822. Despite falling, spot gold is holding its ground against the Federal Reserve Bank’s warnings of further aggressive rate hikes.