Consumer sentiment up but Australian employment failing

7 Feb, 2024
As of 9 am, AEST

Gold Spot Pirce $AU3124

Silver Spot Price $AU34.54

Platinum Spot Price $AU1398

January consumer sentiment through the US edged upwards into January, the highest in 2.5 years. The final reading of the sentiment survey edged up to 79.0 from a preliminary 78.8 earlier in the month and from 69.7 in December. That’s the highest mark since July 2021.

And while consumers seem to be a bit happier pulling out their wallets, Australian employment took a little nose-dive in its January reporting. Excluding Covid lockdowns, we’ve just experienced the worst monthly drop in employment since 1993 when Australia was recovering from a major recessive period. And while unemployment statistics look steady (currently at 3.9%), we’re left scratching our heads as fewer people are looking for work. Australians looking for work dropped to its lowest number in 35 years.

So while Australia’s economy has started to flash ‘alert’, the RBA continues to simply hint at a potential rate reduction of 25bp around May this year. Understanding the sheer pressure from mortgage repayments and cost of living increases, Aussies need a real date in the future to plan their lives around. The time for loose, non-specific language from our economic leaders has passed and we need clear decisions on rate policy immediately.

Gold over the past week has ranged with volatility. Hitting $US2065 late last week it then plummeted to $US2014 within 2 days. It has since balanced at $US2035 and it now looking to continue upwards at a more gentle pace.

Enjoy today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA

ASX200, with 200MDA