Could Australia's economy be on the brink of “a perfect storm" as it faces the challenge of three major economic pressures? Let's examine the warning signs

Blog Categories , Insights

Welcome to Jaggards Wednesday Market Insight

1 March, 2023
As a 10am, AEST.

Gold Spot Price $AU2,714.49

Silver Spot Price $AU31.05

Platinum Spot Price $AU1,419.81

Market News Highlights

Gold prices slipped to a two-month low on Tuesday and were on track for their biggest monthly decline since June 2021, pressured by an elevated dollar and prospects of more rate hikes from the U.S. Federal Reserve.

U.S. gold futures slipped 0.6% to US$1,814.90. Prices touched their highest since April 2022 in early February but soon reversed course. Bullion has fallen more than 6% so far this month after strong economic data from the US boosted expectations of more rate hikes by the U.S. central bank to get inflation under control.

News in Australia this week continued to be inflation and interest rate focused, suggesting that pressure on our economy will continue longer and potentially deeper than expected. News of recession or severe economic downside was also extended out past this year, giving poor forecasts for late 2023 and 2024.

A little closer to home for most Aussies is our housing prices. We’re starting to see the dip in pricing we were all expecting. Last quarter aggregate percentage housing across 5 capital cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) landed at -2.3% and is currently sitting at -9.2% for the rolling year.

Our share market (ASX200) is also seeing a 30-day low of 7246, 3.4% down on January’s high of 7558. As sentiment continues to fall on the back of higher interest rates eating away at Australian monthly budgets, will we start seeing a shift from risk assets, to safe haven assets in the coming quarter? Time will tell.

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

30 days of Gold pricing (USD)