Gold Finds Support as Sharemarkets Lose Momentum and Oil Stabilises
Gold Spot Price AUD $5961.55
Silver Spot Price AUD $88.20
Platinum Spot Price AUD $2531.41
Gold has staged a welcome recovery after several weeks of weakness, with investors once again seeking the perceived safety of precious metals as economic data continues to disappoint. Softer employment figures, slowing business activity and ongoing concerns around global growth have improved sentiment towards gold, helping prices rebound from oversold territory. While the recovery is encouraging for precious metals investors, markets will be watching closely to see whether the move develops into a sustained trend or simply proves to be a short-term bounce.
Meanwhile, US sharemarkets appear increasingly vulnerable after one of the strongest rallies in recent history. Technical indicators are beginning to flash caution, with the major indices approaching a potential 50-day moving average crossover that often signals weakening momentum. At the same time, many of the large technology companies that have driven market gains over the past year continue to cool from previously overbought levels. While this doesn’t necessarily point to a major correction, it does suggest investors may be entering a period where valuation and earnings matter more than optimism alone.
Oil prices have continued their gradual decline but are now showing signs of settling into a more sustainable trading range between US$65 and US$70 per barrel. With geopolitical tensions no longer commanding the same risk premium seen earlier in the year, markets have refocused on supply, demand and global economic growth. Lower and more stable energy prices should help ease inflationary pressures across many economies, providing some relief for consumers and businesses alike while giving central banks greater flexibility as they consider future interest rate decisions.
Gold Futures Technical Analysis
Technical indicators for Gold Futures suggest a BUY on monthly analysis.
Technical Indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Neutral |
| STOCHRSI(14) | Oversold |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Sell |
| CCI(14) | Neutral |
| ATR(14) | High Volatility |
| Highs/Lows(14) | Neutral |
| Ultimate Oscillator | Sell |
| ROC | Buy |
| Bull/Bear Power(13) | Sell |
Enjoy today’s charts
Gold daily chart, with 50MDA
Silver daily chart, with 50MDA
US500, with 50MDA
ASX200, with 50MDA
