RBA comments ‘it was seriously considering raising rates’

Gold Spot Price $AU3497

Silver Spot Price  $AU44.40

Platinum Spot Price $AU1511

In an alarming piece of news this week, we’ve heard that during the RBA’s recent decision to hold rates steady, more and more data was suggesting that rates should actually be increased (and not reduced as expected). With economists given the impossible task of economic soothsaying, the impact on lower to middle socio-economic homeowners, as well as new homeowners will be dire - meanwhile inflation doesn’t seem to be moving in the direction that the RBA was hoping for. Did Australia not raise rates high enough and fast enough?

Meanwhile, the US seems to have their inflation under control, consistently edging closer to their goldilocks zone between 2-3%. After some persistently high inflation reports at the start of 2024, Powell said, the data for April and May “do suggest we are getting back on a disinflationary path.” While the US is not ready to cut rates just yet, there are hints that 1 rate cut may be considered either late 2024 or early 2025.

Gold and Silver and still looking for their next position of strength. After both metals eased back from their heights a couple of months ago, we’re now looking at the potential to jump upwards from a clear falling wedge pattern. However failing to find support in this pattern, we could well see bullion pricing dip a little lower in the near future before recovering. We’ve highlighted the falling wedge in both precious metals for you today. Note the 200MDA (red line) also edging ever closer to current pricing.

Enjoy today’s charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA

ASX200, with 200MDA