RBA drives the screws in, Aussies Christmas Bleak.

8 November, 2023
As at 9am, AEST.

Spot pricing for Gold $AU3063

Spot pricing for Silver $AU35.28

Spot pricing for Platinum $AU1405

Yesterday, while Australian’s watched the race that stops the nation - the RBA delivered some news that may well and truly stop the nation; increases the base cash rate by another 25 basis points. 

With the base cash rate now at 4.35%, mortgage holders could well now be looking at variable banks rates of 6.5% to 7.0% leading into Christmas. 

For those brave enough to do the math, on a $700,000 loan you could well be looking at a minimum monthly payment of $5,000.

Arguably (a topic we’ve talked to before), mortgage holders have already pulled their belts in and reduced their spend over the past 12 months. The real reason inflation continues to be an issue is for non-mortgage holders that aren’t affected by interest rates. If a home is paid off, or you don’t have a home payment - your discretionary spend hasn’t changed at all, and in many cases discretionary spend has probably increased over this period.

Looking to the ASX200 and SP500, we see an alarming pattern emerging in charts that should terrify any investor. We talked to this pattern last week, and are reinforcing it again today. Are our sharemarkets really recovering, or are they simply bouncing downwards from the pressure of higher interest rates. We’d argue that while rates continue their steady increase, we’ll continue to see this downwards stepped pattern.

Meanwhile Gold and Silver continue to hold strong, with Gold dancing around its psychological ceiling of $US2000. 

With War still a big topic through Gaza and Ukraine, we’re seeing continued big pressure on sharemarkets and an open opportunity for precious metals leading up to Christmas.

Enjoy today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA

ASX200, with 200MDA