More data likely to delay rates cut

 17 January, 2024
 As at 9am, AEST.

Gold Spot Price $AU3080

Silver Spot Price $AU34.88

Platinum Spot Price $AU1378

As we predicted leading into Christmas, the rate cuts we’ve all patiently been waiting for to ease our cost of living pressure may not be coming as quickly as they were hinted at.

From our perspective it was a classic marketing ploy to encourage Christmas spend, making consumers think that rates would come down early this year. And it worked. Even by measured CPI standards, prices bumped up yet again fuelling the ongoing battle with inflation.

As many economists adjust their positions on rate cuts - pushing them out to later in the year, we’re left pondering what markets will do to react to this news.

We also have some important news coming later today from the US, specifically retail sales from December. If retail sales proved to be weaker than expected, the FED may be pressured to mention rate cuts yet again to ease ongoing economic pain.

And while sharemarkets adjust, Gold and Silver continue to consolidate in the sidelines. With more conflict predicted in the Red Sea and through Ukraine, shipping lanes are squeezed - which in turn will increase cost of delivering goods around the world. 

It was once said, that an ounce of gold should equal the cost of a well made suit. This saying still holds reasonably true today, though if the materials of the suit are located in a ship halfway round the world and stuck in transit, you can imagine how much a great suit could sell for if you needed one immediately. Gold is always there to hedge and provide protection.

Enjoy today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA

ASX200, with 200MDA