Sharemarkets running hot, looking cooked

Gold recovered well in the past week, bouncing off its 200MDA and showing strength as predicted. Its previous high of $US2008 is now in its sights. If we see consolidation above this price, we could well be looking towards a $2050-2080 pricing within the short to medium term 

And this recovery in price for Gold is on the back of Sharemarkets looking a little overpriced. While the ASX200 and SP500 have pushed a little past their expected pattern, we are now seeing a lot of pressure from the 200MDA, especially as RSI starts to approach overbought territory. We’ll highlight this in today’s charts for you.

Earnings season from the US has provided a blend of success and failures, making overall sharemarkets predictions even trickier leading up to Christmas. Regardless of reporting, some big players are pulling out citing that ‘risk outweighs future gains at the present’ and are looking to wait out the next period holding cash (or bullion).

And the FED have announced that inflation is increasingly looking more and more under control. Month reporting served a 0.2% increase in CPI versus an expected 0.3%. These figures will likely hold off any rate hikes as we move towards Christmas. Not so much luck in Australia as households continue to plan for increases to their monthly mortgage payments leading into holiday season.

Enjoy today’s charts and we’ll catch you Friday for our technical forecasts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA

ASX200, with 200MDA