Weekly Gold Technical Analysis: Inflation data getting better. Stocks, Gold and Silver also ZOOM

As we expected earlier in the week, better than expected inflation data has given fuel the Stockmarket. Precious metals are also joining in, both jumping up this week. Silver jumped very aggressively, as you can see in today’s pricing charts.

Specific data around US inflation is shown here today as well.

You can see that for the Month of June, at 0.2% CPI is literally melting away.

Annualised, CPI would be hitting targets today (12x0.2%=2.4%), however, the FED won’t be assuming anything in the coming six months. Economists are still anticipating 2 more rate hikes this year, to ensure inflation is down (and stays down).

While continued rate hikes will definitely be felt by mortgage and debt holders worldwide, today we’re going to take a minute to appreciate what the FED has actually achieved within a very small space of time. As promised, they seriously decelerated the inflationary conditions of their economy within a very small period of time. We can debate over whether the US and other advanced economies will gently ease into a slower growth period, or crash into a recession, but the fact is very apparent - inflation is seemingly under control.

When holding precious metals, it can be alluring to almost will an economy to crash and burn. Regardless of your attitude to modern monetary theory, Gold and Silver are amazing tools to protect your wealth during uncertain economic cycles. Some bullion holders are ‘lifers’ and simply keep adding to their stack.

Each week or month, regardless of price they diligently protect themselves from bull and bear cycles through their entire adult lives. They carry no stress of the markets at all. For others, precious metals provide a safehaven at certain/ uncertain points of market cycles. When markets ease or return to normal they retire their bullion position. And lastly, our active investors - constantly looking for buy and sell opportunities within the gold and silver market cycle. All participants in the precious metals market are equally correct in their approach.

That’s why it is such an important market and one that will continue to perform for all its market participants.

Here are today’s charts and market forecast below.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

Gold Technical Analysis

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

Technical indicators - Monthly Projections

Summary for Monthly forecast: Strong Buy

Disclaimer

This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.