Risk markets explode, Gold and Silver creeping up

On the back of improved CPI (Inflation) data from the US this week, Sharemarkets gathered strength and pushed upwards aggressively. Both Gold and Silver have also matched pace and continue to reach towards their psychological ceilings (Gold $US2000).

Oil pricing has continued its slump in the past week as well, now selling at US$77, down from its high of $US97 just a few weeks ago. These relaxing of oil prices have also given investors the strength to continue throwing money at a somewhat overpriced market.

Now that the initial shock of the Gaza conflict has subsided, markets seem to be ‘carrying on as per normal’. We’d argue that in the coming months, we’re going to see even more supply delays in international shipping – which in turn could well put more pressure back on inflation. But at the moment, the US seems to be celebrating a better than expected CPI number – and as such will pull out the champagne and begin enjoying the Christmas season. Meanwhile, countries second to the US seem to be scratching their heads still trying to solve serious cost of living crisis amongst poorer inflation data. And while the US dollar remains incredibly high, we’ll continue to have these issues to solve.

Enjoy today’s charts and technical forecast below.

Gold daily chart, with 200MDA

Silver, 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

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.