US-Australia Sharemarkets Split with Australia Left Out

Gold continues to hover just under its 50-day moving average, and it’s starting to feel less like a rejection and more like a market that simply isn’t in a rush. There’s support there, but not quite enough momentum to push through cleanly. That usually tells you something important, buyers are present, just cautious. With everything else going on globally, it’s not surprising that gold is taking its time rather than making a decisive move.

That broader uncertainty is still being shaped heavily by the Iran and US situation, and for Australia, the impact is starting to show up in a more direct way. Fuel costs have remained elevated, and now there’s growing momentum behind a proposed 25% tax on gas extracted from Australian soil. Public support is building, largely off the back of frustration that local resources haven’t translated into local price relief. Politicians are now in a tight spot, trying to balance voter pressure with heavy lobbying from the gas sector, which is keen to keep the current settings in place. However this lands, it’s another layer of cost that risks flowing through the economy.

That flow-through is already becoming visible in construction. Concrete prices are expected to rise by around 6% in the near term, driven largely by higher fuel and transport costs. It might not sound dramatic on its own, but stacked on top of everything else, it adds weight. Builders will feel it first, then developers, and eventually home buyers. At a time where affordability is already stretched, this is unlikely to go unnoticed.

Meanwhile, equity markets are telling a slightly different story depending on where you look. In the US, sharemarkets have pushed higher again, continuing their recent run as investors lean into optimism around earnings and the idea that the worst of inflation may be behind them. Back home, the ASX200 hasn’t followed with the same energy. It’s been more subdued, almost watching from the sidelines as global momentum builds elsewhere. Part of that comes down to sector exposure, but it also reflects a more cautious tone locally, particularly with cost pressures building in key parts of the economy.

Put it all together and it’s a bit of a mixed picture. Gold is steady but waiting, US markets are pushing ahead, and Australia is dealing with the real-world impact of higher energy costs. There’s no single direction here, just a series of pressures and pockets of optimism all playing out at once.

Enjoy today’s charts 

Gold daily chart, with 50MDA

Silver daily chart, with 50MDA

US500, with 50MDA

ASX200, with 50MDA

Author

Hercules Tsoutsas

With deep expertise in gold, silver, and commodities markets, Hercules has spent years helping investors navigate the ever-changing landscape of precious metals, from market movements and trends to smart buying decisions.