Market Decline Persists, Reflecting Ongoing Downward Trend

Recent trading sessions in both the Australian and US share markets reinforce our prediction of a sustained downward trajectory, we’ve again included charts showing the macro position we see unfolding. 

Despite the Reserve Bank of Australia's decision to raise interest rates this week, the anticipated strengthening of the Australian dollar against the US dollar has not materialised. Instead, persistent downward pressure has led to a further decline, pushing the AUD into the 63-cent range. AUD’s 200MDA ceiling pressure is proving too much.

As the Australian dollar weakens, interest rates continue to rise, and the impact of ongoing global conflicts tightens general supply lines; discussions on the Cost of Living will be a prominent topic at upcoming Christmas gatherings throughout December. Australians find themselves facing challenging circumstances, and regrettably, a quick salary adjustment won't provide an immediate solution to the issue.

Meanwhile, Gold is holding its own and looking strong after its recent consolidation around $1950. We’ll be looking for Gold to start comfortably trading above $US2000 into the coming weeks, and start pulling its 200MDA up with it to provide additional support.

Enjoy today’s charts and technical forecast below.

Gold daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.

Technical indicators - Monthly Projections

Summary for Monthly forecast: Strong Buy

Disclaimer

This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.