CPI stable Equals Rates on Hold
US CPI data was released yesterday, and while this data gives optimism to the idea that inflation is now under control, the biggest side effect we can look forward to from this information is…. Slower growth.
But that is the entire FED game. Inflation (or rampant growth) is bad, so we need to kill it.
How do we kill rampant growth? Restrict money flow and make it hard to grow quickly. Increasing interest rates is the biggest weapon the FED has.
While increasing interest rates clearly puts more pressure on households and businesses everywhere – the unwinding component (or monetary easing), takes a long time. Sharemarkets could respond quickly, but households and businesses will take many years to see rate cut benefits.
With both the RBA and now the FED suggesting that rate cuts are maybe being considered in 2025 – we’ll definitely start seeing more economic pain in the near future.
Enjoy today’s forecast and charts and we’ll be online next week ready to comment on FED reporting.
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.
