Sharemarkets recover losses, but the damage is done

22 November, 2023
As at 9am, AEST.

Spot pricing for Gold $AU3051

Spot pricing for Silver $AU36.39

Spot pricing for Platinum $AU1444

Through massive efforts, the US500 (and ASX200 to a lessor extent) have recovered, as we’ll show in today’s charts. Meanwhile, quietly sitting in the corner Gold has just today bumped against its psychological ceiling of $US2000. This is very big news for bullion holders, especially as sharemarkets start to overheat and begin selling off from an overbought market, check out the RSI in the US500 in charts today.

And still, US market indicators continue to flash warnings of an impending recession. Unemployment is starting to rise, housing starts are lessening, and general sentiment from consumers heading into Christmas is pretty poor. Yesterday’s trending news focused on Australian’s stating that this Christmas, presents are looking more and more likely to be simply ‘Painted Pinecones’.

Lastly, we’ll comment on the strength of the US dollar. We’ve just started to see a slight weakening in the USD. But if previous tightening cycles are anything to go by, at some point the US will begin unwinding high rates and thus cause their dollar to weaken. Previous periods where the US begin QE (quantitive easing), the dollar weakened quickly, and caused every other correlated country to follow suit, all in an attempt to improve export pricing of goods while stimulating their economy with lower rates. Time will tell if we follow a similar path; last time this occurred Gold soared.

Here’s today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500 daily, with 200MDA

ASX200, with 200MDA