RBA on hold, US election results inbound

Spot pricing for Gold $AU4139

Spot pricing for Silver $AU49.35

Spot pricing for Platinum $AU1519

The RBA has kept interest rates on hold yet again, even though CPI (consumer price index) is now within the target range of 2-3% (Currently at 2.8% for the annual average and 2.1% for monthly average). With many Aussies desperate for any kind of monetary relief leading into Christmas, the RBA doesn’t seem interested in cutting rates any time soon. Meanwhile, the US is now leaning towards more rate cuts to further stimulate their economy. Whether these materialise through 2025 or are simply lip service to continue strengthening consumer confidence, is seemingly irrelevant as the country gears up for a new president.

And the world is waiting on the edge of their seats as the US election outcome is set to be delivered over the coming week. Markets are of course jittery, though Gold and Silver are waiting patiently for any substantial news before making any movements. While economists are predicting that a Trump presidency will continue to drive inflation higher, we’d argue that a Harris presidency will likely do the same over time. 

As the West shows that it has survived another inflationary period, crushing measured CPI down to its acceptable range; If we’re continuing to follow Modern Monetary Theory (MMT), we’ll once again head down the path of securing more massive debt to finance our requirements then inflating this away in the later stage of the cycle.

We’ll keep you up to date with news as the election unfolds.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA