FED pauses to save Christmas, but Inflation remains

In a move that surprised some, the FED has remained stable on their rate decision this month. This may offer a slight reprieve to Mortgage holders, but in the stark reality of real world cost of living expenses, the damage is already done. Simply put, people are spending more than they are earning and at some point this will cause catastrophic outcomes on markets collectively.

Amongst continued high interest rates, the SP500 (and the ASX200) have seen a little jump upwards (as we’ll show today).

While it is always exciting to see gains in any market – if we look at the sharemarket from a bit more of a macro perspective, this recovery looks incredibly fragile. If we follow the established pattern from this year, it looks like we are going to continue bouncing downwards and look for support way below the 200MDA.

So while a slight reprieve from higher interest rates may keep Christmas alive – a serious knock downwards for the SP500 and ASX200 may make a lot of Mum and Dad investors very uneasy leading into 2024. Flipside, Gold looks to be consolidating well above their its 200MDA and gaining more strength looking forwards.

Here are today’s charts and technical forecasts for Gold below.

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 STRONG BUY 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.