Metals bounce back!
After a relatively calm Wednesday, there was a significant overnight surge in Gold and Silver. Silver made a notable leap from its recent low of US $22.30 to reach US $24.32 in less than a week. Interestingly, both metals have now positioned themselves above their 200-day moving averages (200MDA), suggesting the potential for more growth.
However, the scenario was quite different for the ASX200 and US500 yesterday. They struggled and experienced another decline (ASX200 dropped from 7200 to 7094) as they worked to regain their footing. Although there hasn't been any major news driving this market drop, all eyes are on the Federal
Reserve (FED), and particularly Chair Jerome Powell, who is scheduled to address the press today. There's a sense in the market that there could be a more hawkish stance on rates and inflation leading into the holiday season later this year. Economists' expectations vary, ranging from rate cuts to possibly two more rate increases before Christmas.
Tech shares, notably NVIDIA, also seem to be losing some of their recent momentum. As their prices consolidate, the overall index follows suit, raising concerns about further drops in the SP500 over the next week. The unusual strength of the US dollar has also influenced share prices.
Amidst all this market uncertainty, gold and silver have played their roles perfectly as safe-haven assets. It remains to be seen how the aftermath of Jerome Powell's speech today will impact both the equity and precious metals markets in the early days of next week.
ASX200, with 200MDA
US500, with 200MDA
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a NEUTRAL signal.
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Buy |
| MACD(12,26) | Buy |
| ADX(14) | Sell |
| Williams %R | Buy |
| CCI(14) | Buy |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Sell |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
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.