Stocks and Gold continue at record levels, which will win?

With both share markets and bullion markets in focus, you’d be right to take a brief moment thinking ‘surely this can’t go on forever?’ Both the US500 and Gold are now continually hitting all time high territory on a weekly basis, amidst average economic data and ongoing geopolitical conflict.

So what does this mean? Put very simply, inflation isn’t under control. While on Main Street, consumers may be starting to see relief from ongoing price hikes but back on Wall Street the story is very different. The usual indicators on share pricing and true valuation have been thrown out the window as investors desperately continue to pile into stocks in anticipation rates will continue to drop to stimulate even more growth. 

But Gold holds its own agenda, one completely separate from the US500. 

It gives a much clearer picture of inflation and its effects. 1oz of Gold has historically been referenced as being able to ‘purchase a nice mens suit’. With many now thinking that for AU$4000 you can purchase a damn fine suit - it wouldn’t be far wrong. As a true indicator of inflation and its effects, to see Gold move from $US1800 to $US2700 in just a year definitely gives a much more painful picture of inflation than the story the FED and RBA have passed our way.

So while celebrations are in order (and they are), being able to have more than one measuring stick is very important in navigating through the true economic position the West is currently in. 

Enjoy today’s forecasts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a BUY signal.

Technical indicators - Monthly Projections

 Summary for Monthly forecast: Strong Buy

*Not financial advice, please DYOR prior to any investment decisions you make.