RBA keeps rates on hold

8 May, 2024
As at 9am, AEST.

Gold Spot Price $AU3511

Silver Spot Price $AU41.41

Platinum Spot Price $AU1498

As expected, Governor General Michelle Bullock has kept rates on hold for the foreseeable future. Commenting ‘At no point has she promised rates would be cut’, a lot of Australia is now left confused (hang on, weren’t rate cuts promised late last year?)

Markets in Australia have reacted with strength, jumping from 7550 up to 7804 in the last 3 days.
 US markets have also responded strongly in the past week.

In what will be a race to the bottom, countries are now left deliberating ‘when should we cut rates?’. Whoever cuts rates first, will definitely damage their currency. And with most of the western world aligned to the US and already suffering from a weakened currency, there isn’t much wiggle room on the downside. Australia is already sitting reasonably low in its currency position, and if we were to lead the way for interest rate cuts we could well lose another 5-10c against the USD. 

Gold is again sitting calmly in the sidelines, waiting quietly for any economic blunders or additional conflict news.

We’ll be watching closely later this week as the US reports on consumer confidence - and next week as they also report on PPI and CPI data.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA