Weekly Market Analysis: August a month of volatility, with Gold and Silver looking positive

August has been a rollercoaster ride marked by extreme volatility. The US500, ASX200, Gold, and Silver have all experienced fluctuations throughout the month, largely influenced by unfavourable news from China. Now, as we step into September, historically known for its jitters in the market, the atmosphere is tense. Interestingly, September has consistently been the worst-performing month for the share market for almost a century.

Both Gold and Silver bounced back from their respective 200-day moving averages (200MDA) about a week ago and appear to be finding new points of consolidation, as depicted in the pricing charts we've included below.

While we've been celebrating the taming of inflation in the US for a few solid months, thanks to higher rates curbing the Consumer Price Index (CPI), the situation has changed. Rates are now at their highest point in nearly 22 years in the United States. Many economists are speculating that we might have hit the peak of these rate hikes and could be preparing for monetary easing in the upcoming year. However, there's a wrinkle in this argument: recent measurements of consumer spending for July show the highest levels since January this year. As long as consumer spending keeps growing strongly, the Federal Reserve (FED) will likely keep their finger on the trigger for more tightening.

Irrespective of whether the FED tightens or eases, precious metals like gold and silver remain the go-to hedge against this kind of uncertainty. This is, in fact, one of their core strengths – providing a stabilising element within a portfolio exposed to risks.

You'll find today's technical analysis and charting below for your reference.

Gold, with 200MDA

Silver, 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.