Everything Golden, but with a Hint of Inflation

20 December, 2023
As at 9am, AEST.

Spot pricing for Gold $AU3019

Spot pricing for Silver $AU35.67

Spot pricing for Platinum $AU1429

Gold looks to be healthily consolidating around US$2040 and still showing strength to push higher yet again. Gold’s RSI is sitting strongly around 58 at present, indicating there is a lot of upside movement still on the horizon. The 200MDA for Gold is also showing great resilience, already catching and bouncing off two downwards trends since November.

If Gold does push higher, sooner - its little sister Silver could also show some positive volatility. Known for bouncing all over the place, Silver is well overdue for its moment to shine in the sun. With the GSR (Gold to Silver ratio) sitting high at 84, and the COMEX average at 60 - Silver could well steal the show for early 2024.

And while Markets around the world are celebrating economic victories, hints of inflation (as we discussed a month ago) are emerging from the Euro region in response to delayed freight from war-affected zones. Delayed freight and higher than normal interest rates will of course be passed onto the consumer as… you guessed it Inflation. 

While the US and Australia won’t immediately be affected by this specific scenario, it is simply part of a bigger puzzle that will add additional pressure to an already weakened economic system desperate for interest rates to come down.

Also keep a close eye on the Australian dollar over the next few months. In previous cycles when the US took a more dovish stance, their dollar weakened. Generally through any loosening of monetary policy, the US was deliberately weakening their dollar to entice more exports. They could well employ the same tactic again to further stimulate their economy. If so, expect the AUD to leap upwards.

Enjoy today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500 daily, with 200MDA

ASX200 daily, with 200MDA