Gold Withdraws on the Back of Better Economic Data

13 December, 2023
As at 9am, AEST.

Spot pricing for Gold $AU3021

Spot pricing for Silver $AU34.84

Spot pricing for Platinum $AU1438

The FED news released yesterday shows inflation data looking better than anticipated, especially on the back of previous months consumer spending strength. 

November CPI printed 0.1% with a YoY result sitting at 3.1%. Edging ever closer to the FED’s target range of 2-2.5%, it’s looking like aggressive monetary policy over the past 24 months is bringing inflation under control.

We’re also seeing growth patterns emerge in Australia’s sharemarkets. The ASX200 bursting through its 200MDA and now looking for new highs. Whether this is just a pre-Christmas optimism rally, or maybe there are genuine core economic improvements driving this rally - the outcome is still the same. Higher numbers begat higher numbers. Consumers are piling into the sharemarkets, hoping that as monetary policy loosens up, shares will shoot up even further. 

Meanwhile, Gold’s recent high has softened. Withdrawing and consolidating while waiting for news that shows that our economic position isn’t as strong as we first thought. A record number of Australian’s are reporting mortgage stress. Tents and general homelessness is on the rise in our capital cities and our social services are struggling to keep up with demand and cost of living increases. So while celebrations are in order for organising an economic ‘soft landing’, there a many many people under stress or under severe financial pressure leading into this holiday season. 

Gold bugs are seeing the current pullback as an opportunity to shore up their holdings and add to their stacks. And institutional investors are closing out their positions in the sharemarkets, waiting to see what happens next. 

Enjoy today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500 daily, with 200MDA

AX200, with 200MDA