Labour costs soar causing US productivity slumps
US productivity has risen at a low 0.3% for the last quarter, compared to previous quarter reports of 3.5%.
Productivity has previously increased at around 2.9% and to see such a drop in productivity is of great concern.
With businesses citing labour price increases and shortage of staff being the largest contributor to productivity reductions, ongoing productivity challenges could well continue into the future until these issues are rectified.
If you’re curious as to how/why productivity plays a part in the economic theatre; as business confidence to produce and sell products wanes, the ability to generate revenue also reduces which compounds further into GDP negative growth. And with a very small GDP recently, to also see ongoing productivity slumps ensures we won’t see GDP growth in the very near future.
Gold and Silver have eased over the past week, following movements similar to the SP500 with Silver showing a little more volatility by comparison. Both bullion and sharemarkets are sitting tight presently and could well move in either direction over the coming week – either following a dead cat bounce (SP500) or head/shoulders (bullion) pattern, or could well ratchet up with more strength and recovery.
Enjoy today’s charts and forecast.
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 | Buy |
| 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 DYOR prior to any investment decisions you make.
