Negative home sales and GDP tomorrow

29 May, 2024
As at 9am, AEST.

Gold Spot Price $AU3553

Silver Spot Price $AU48.39

Platinum Spot Price $AU1612

US FED news tomorrow will release GDP data for the first quarter of 2024. With estimates landing at 1.2%, this continues the downward trend expected by economists. Previous quarter GDP reporting was 1.6% - and while the upcoming quarter estimates are definitely showing a slowing/weakening economy, results are still not recessive in nature which will give the FED a little breathing room before having to consider rate cuts.

That said, if the economy continues to slow into future quarters, the FED will most definitely need to issue rate cuts to stimulate growth. While rate cuts can generally take 6-12 months to filter through to consumers in any meaningful way, by simply making a statement ‘rate cuts are coming’ the FED could well see a slight bump upwards in economic growth. 

We’re now reaching the end of monetary tightening where we’re unlikely to see further rate hikes - but both the FED and RBA are using language to continue their hawkish stance. By simply saying ‘We aren’t ruling out the chance of future rate hikes’, both the FED and RBA are ensuring that consumers continue to keep their wallets closed.

In conflict news, Taiwan and China look to continue towards some kind of engagement as tensions continue to mount in the region. China completed military drills in the region, practising encircling Taiwan and deterrence posture. With much of the world’s high quality computer chips being produced in Taiwan, disruption of supply would affect most of the Western world almost immediately. These chips are used in Cars, computers, phones and modern AI based applications.

Gold looks to be ready to make its next upward hike, especially around news in Taiwan. Silver has also enjoyed a recent upward spike and looks to be primed to move towards its all time high in the coming months.

Enjoy today’s charts and forecast below.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

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