Consumer confidence soars, amid conflicting data
US FED reported consumer confidence bounced up from 97.5 to 102 in reporting for May. Citing strong labour market growth, we see completely conflicting data from CPI, GDP and ongoing monetary tightening (with a hint of another rate rise to really dampen the spirit). Economists are hesitant to state that consumer confidence is here to stay, with many predicting that confidence will drop again to 96 in the next reporting period.
And it has been a few years, but Trump’onomics is back. Similar to the previous election cycle, we’re starting to see Trump in news headlines regularly. This news cycle is a little less glamorous than the previous cycle, with highlights on Jail time, huge financial losses and extended periods of court time. But the wheels of political campaigning are definitely in motion. Trump still has a strong/loyal voter base and time will tell if he can regain the role he lost in 2020.
Looking to Taiwan, their Parliament approved what is seen as a more ‘pro-China’ policy, as supported by Taiwan’s opposition party. Regardless of the massive protests being held outside parliament, little could be done to change the result. The laws, adopted on Tuesday, pushed through by the opposition nationalist Kuomintang (KMT) and smaller Taiwan People’s Party (TPP), give lawmakers the power to require the president to give regular reports to parliament and answer lawmakers’ questions. It also criminalises contempt of parliament by government officials.
The bill also hands the legislature increased control of budgets, including defence spending. With China posturing to continue more military drills and an ongoing presence in the region, it does feel that tension will continue for the short to medium term.
Gold and Silver have enjoyed a quiet week, with Gold consolidating around $US2350 and Silver $US31. But with US ongoing political news and continuing conflict throughout the world, it certainly feels like a good time to hold precious metals.
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 STRONG BUY signal.
Technical indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Overbought |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Overbought |
| CCI(14) | Overbought |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: Strong Buy
*Not financial advice, please do your own research prior to any investment decisions you make.
