Credit declines and a CPI report left wanting

Spot pricing for Gold $AU3890

Spot pricing for Silver $AU45.57

Spot pricing for Platinum $AU1432

Consumer credit has pulled back significantly on previous months in a sign that the economy is either recovering spectacularly, or more likely consumers have hit their card limits and cannot secure more lending.

As the latter seems more logical considering the monetary cycle position we’re currently in, this would suggest that Christmas isn’t looking as good as we’d hope for many families.

With inflation now apparently tamed, and interest rates preparing for the chop - we’re silently awaiting the next stage of monetary policy (following the pattern of previous MMT or modern monetary theory), monetary easing. And the timing couldn’t be better. Looking towards a US election where both potential leaders can and most likely will start the money printing machine again, to meet and exceed ongoing social and government services. 

And as conflict continues between Israel, Gaza, Lebanon, Ukraine and Russia - we’ve reached a horrific realisation that the world cannot supply enough missiles to fuel these ongoing wars. Delay times for missile production continue to be delayed, with some missile systems now taking years to produce. 

Bullion pricing has eased a little, but looks to have recovered from a quick daily drop to $US2605. If it can hold steady above $US2600 into the coming week, amidst higher oil pricing and continued international conflict - we could be looking towards higher pricing leading into the US election.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA