Gold Spot Price AUD $6216.23

Silver Spot Price AUD $93.13

Platinum Spot Price AUD $2539.03

Gold pushed higher yesterday, rebounding from a near one-month low after its recent sell-off appeared to leave the metal slightly oversold. A softer US dollar and easing bond yields helped buyers return to the market, with the move suggesting that underlying demand for gold remains intact despite recent volatility.

The next test will be whether gold can hold these gains and turn the rebound into something more convincing. One stronger session does not necessarily establish a new upward trend, but it does indicate that investors are still prepared to buy when the price falls far enough. With US employment and inflation data approaching, gold could remain sensitive to any change in expectations surrounding interest rates.

Closer to home, Australia’s labour market is also showing signs of cooling. The latest unemployment rate has moved to 4.5%, up from 4.4% previously, while employment declined by around 16,000 people during July. The increase is not dramatic on its own, but it does suggest that finding work is becoming more competitive.

Artificial intelligence may add another layer to this shift. Businesses are increasingly using AI and automation to improve productivity, complete administrative work and reduce the time required for routine tasks. This does not mean AI is immediately replacing workers across the economy, but it may allow some businesses to grow without hiring at the same rate as they once did.

That creates an uncomfortable situation for employees. Workers are already competing in a softer employment market, while businesses are being encouraged to find further efficiencies through technology. Entry-level roles, administration, customer service, marketing production and other repeatable office functions may face particularly strong pressure as AI tools improve.

Australia’s latest economic figures reinforce the broader slowdown. Annual GDP growth has eased to 2.1%, while annual inflation remains higher at 3.5%. Earlier readings placed those figures at 2.5% and 3.8% respectively, but the basic problem has not changed: prices are still rising faster than the economy is growing.

GDP growth and inflation measure different things, so they are not a direct comparison of household income against household costs. However, when inflation is running well ahead of economic growth, it helps explain why the economy can appear to be expanding on paper while many Australians feel as though they are moving backwards.

Housing costs rose 5% over the year, new dwelling prices increased 5.7% and rents climbed 3.6%. These are expenses households cannot easily avoid, particularly when mortgage repayments, insurance, food and energy costs are already absorbing a larger share of income.

Australia is therefore facing a difficult combination of weak growth, elevated inflation and a slowly deteriorating employment market. The Reserve Bank still needs to control inflation, but further interest-rate increases would place additional pressure on household spending, business investment and employment.

For gold, that uncertainty may continue to provide support. The metal’s latest rebound suggests investors still see value after a pullback, particularly when economic growth is soft, inflation remains stubborn and the path for interest rates is becoming increasingly difficult to predict.

This article is general market commentary only and should not be relied upon as personal financial advice. Consider the information carefully, conduct your own independent assessment and seek professional advice where appropriate before making any investment decision.

Enjoy today’s charts

Gold daily chart, with 50MDA