Weekly Gold Technical Analysis - Consumer Confidence Grows Amidst a Volatile Economic Landscape

On the back of another rate rise and numerous banking woes, the markets have recovered and jumped upwards in the past week. The US500 started out at 3950 and is now sitting comfortably at 4054 at the time of writing. The ASX200 has also enjoyed a stronger week, starting at 6940 and ending at 7167 at the time of writing. Share market information aside, Silver is the stand-out performer moving aggressively from 20.65 to 23.88 over the past 3 weeks, or around 15%.

US Mortgage levels fall to lowest in 6 weeks. The S&P Case-Shiller home price index was almost sliced in half in its recent report on Tuesday, down from 4.6% to 2.5% (reporting for January 2023). The FHFA home price index also eased from 6.6% to 5.3%.

In a massive surprise twist this week, consumer confidence grew during March, from 103.4 to 104.2. Predictions during this period missed the mark altogether, anticipating a drop in confidence. This sentiment improvement could be contributed to consumers anticipating that the FED will now slow its rate rises through the rest of the year.

US jobless claims hit 198,000 for the week, the highest in 3 weeks. The total number of people seeking unemployment benefits on March 18 was 1.69M. While unemployment still remains low, these statistics are starting to feel pressure from continued rate rises and other business sentiment throughout the region.

As the US opens today (as Australia calls it a week), FED Gov. Cook and FED Gov. Waller are due to speak to this week’s economic news. We’ll have more information about their comments next week.

Gold Technical Analysis

Gold continues to recommend a STRONG BUY over a weekly and now monthly basis.

The STOCHRSI(14)and Williams %R are ringing in an overbought signal, however, every other metric is recommending a strong buy.

We’ve included a daily and weekly chart, showing Gold and Silver, their 200MA and RSI. RSI looks to be holding strongly around 70 for Gold and Silver has room to move with its RSO sitting at 59.