Markets Settle as Wall Street’s Fear Gauge Plunges; Gold Holds Strong, RBA Tipped to Cut Rates

Spot pricing for Gold $AU5022

Spot pricing for Silver $AU50.99

Spot pricing for Platinum $AU1547

Wall Street’s “fear gauge”—the CBOE Volatility Index (VIX)—has collapsed at one of its fastest clips this year, signalling a major shift in market sentiment. Investors are beginning to feel more confident that the U.S. economy can withstand the weight of high interest rates, and equity markets are responding in kind.

The S&P 500 has now broken above its 200-day moving average, a technical milestone that suggests further upside could be on the cards. While some are wary of a near-term pullback, momentum appears to be building across key sectors, especially among mega-cap tech stocks.

Meanwhile, gold continues to outperform, holding well above its 200-day moving average. Central bank demand, ongoing geopolitical tensions, and longer-term inflation hedging are keeping the metal in high demand. Many traders still see further upside for bullion, especially if global growth softens or monetary policy starts to ease.

In Australia, attention is shifting to the Reserve Bank’s next interest rate decision on 20 May. A growing number of economists are forecasting a cut, with NAB going so far as to predict a 50 basis point reduction—potentially the first of several over the coming months. Falling inflation, softening domestic demand, and sluggish business investment are all contributing to the speculation.

Markets are already pricing in a high likelihood of a cut this month, which could offer some relief to heavily indebted households and reignite interest-sensitive sectors such as housing and construction.

 Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA