New Aussie Gold Price All-Time High Amidst Economic Chaos
Gold has soared this past week, AUD now sitting at $3129 – benefitting from strong USD Gold growth and a weakened Aussie dollar.
FED news also has Gold looking attractive with FED chair Powell stating that continued strong retail months like September will likely force interest rates higher to combat inflation and excessive growth. Amongst strong retail spend, the US Government is also increasing military budgets on the back of War in both Ukraine and Israel. As Military spend increases, so does GDP and other measurement tools that in turn… increase inflation yet again.
All this leads to the notion that inflation and higher rates will be here for longer. Where previous inflationary periods and recessions have averaged their lifespan to around 18 months of aggressive rate tightening, this current period may well continue for longer. And as higher rates continue to decimate the middle class in the Western world, there seems to be only a few places to position any saved cash, a) in the banking system (which is looking increasingly unsteady) b) commodities that rise with inflation and c) Gold and Silver.
Gold and Silver provide protection in a way that cash in the bank simply cannot. With no risk of a ‘bank run’ or ‘deposits insurance only held to a maximum of $250K’, Gold and Silver can simply sit in a Vault and grow, while inflation continues to strip out profits everywhere else.
For those enjoying the current run upwards for bullion, there could well be higher gains to be made as the FED and World tensions increase.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, 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) | Sell |
| Williams %R | Buy |
| CCI(14) | Neutral |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Sell |
Summary for Monthly forecast: STRONG BUY
Disclaimer
This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.
