Consumer confidence falls amid political anxiety
28 Feb, 2024
As at 9am, AEST.
Gold Spot Price $AU3105
Silver Spot Price $AU34.44
Platinum Spot Price $AU1379
Consumers' confidence fell in February from a 6 month high as political anxiety for upcoming elections continues to grow.
With both potential party nominations not faring well in public light - Both Biden and Trump are set to create disappointment regardless of whoever wins.
With economists hanging the consumer confidence measurement on the back of political anxiety, we’re more likely to position the poor result on actual consumer sentiment (ie, a lack of money to spend). While the US sharemarkets continue to perform well, actual consumers are facing it tougher than ever before. With many holding on for dear life until the FED starts cutting rates at the end of 2024 - relief may not come soon enough. Mortgage holders have already cut back discretionary spending to the point where there is no more ‘fat to cut’.
So with Consumer confidence falling in February surprising some, it really comes as no surprise when looking at the overall picture through this monetary tightening period. We’re close to the end of the road and cracks are showing everywhere. We’re keeping a close eye on unemployment figures, CPI and consumer confidence through the next quarter to give a better picture of how the economy is really performing.
Gold looks to be at a pivotal point in the coming week(s). Watching our daily charts we’ve attached today, keep an eye on a large downward wedge that may well repeat in the coming month. While there could be some downward pressure on gold in the near term, if it finds support at its 200MDA, this downwards wedge could well reverse into strong upward momentum within the next 4-6 weeks. We’ll keep you posted as it unfolds.
Enjoy today’s charts and forecast below.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, with 200MDA
ASX200, with 200MDA
*Not financial advice, please DYOR prior to any investment decisions you make.