Pending home sales jumps and US election polls
Pending home sales in the US have jumped exponentially for the month of September. Moving up from a modest 0.6% to a whopping 7.4% – economists have cited ‘lower current and future rates are pulling buyers in’.
Pending home sales refers to actual contracts being signed on the purchase of a home, a signal that the housing market is looking very strong. Is the US the current 30 year mortgage rate sits around 6.08%, where in Australia our current average mortgage rate is 6.27%. The RBA is yet to cut rates, but many anticipate a similar rush to property like the US once Australia does.
And US election polls are looking very tight. With Kamala Harris capturing the essence of the Left and Donald Trump banding together with the conservative Right. Though at times, it seems this pre-election period reverts to simple mud-slinging antics; at other times we’ve seen some insightful moments that capture how important this election truly is. If Harris takes the Presidency, the US will again move more towards inspired socialist style services and safety nets. If Trump is elected, the US will focus more on manufacturing and reducing reliance on importing of products – relying on capitalism within a free market to reward those that work hard.
Regardless of who is elected, the policies put in place over the next 12-24 months could well shape not just the United States, but the better part of the Western World into the next decade.
Sharemarkets wobbled downwards in the past few days, reminding everyone that volatility is the key takeaway during an election. Gold and Silver also lost a little shine, pulling back slightly.
Enjoy today’s forecasts.
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) | Overbought |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Overbought |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Overbought |
| CCI(14) | Buy |
| ATR(14) | High 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.
