Jobless claims up, RBA holds strong and markets prepare for CPI data next week

US jobless claims have just been released for April and we’ve now seen 3 consecutive months of increases in claims. Up almost 10% to 231,000 on previous months' reporting, we’ve a feeling employment data will continue to report negatively for the near term until monetary policy shifts.

Gold and Silver have popped up - recovering on recent consolidation and currently landing at $US2348 per oz and Silver at $US28.36 per oz. Seeing both metals recover over the past week gives us insight as to how the market is really feeling at the moment. With share market confidence wobbly and precious metals stable and recovering - the economy is really just a matchstick away from catching fire.

If next week's CPI data shows a progressively slowing economy (as the FED hopes), the chances of a rate cut very late in the year are still on the cards albeit somewhat slim. If CPI data is slightly inflated or not meeting the expectations of the FED, we could be looking at higher rates for longer than expected. Based off last month's CPI print, we’re expecting a low figure - something reflecting the stagnant growth many industries have been facing. 

Enjoy today’s forecast and charts and we’ll be online next week ready to comment on FED reporting.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with weekly analysis of a STRONG BUY signal.

Technical indicators - Monthly Projections

 Summary for Monthly Forecast: Strong Buy

*Not financial advice, please do your own research prior to any investment decisions you make.