US core CPI ticks up, Portworkers automation key to strike

CPI results are in and surprise surprise… CPI increased yet again. Did the FED cut rates a little too soon?

While still within the healthy inflation range, the FED has promised, to see an immediate uptick in CPI is a little unsettling. On the flipside, in Australia we’re still holding rates high and steady while keeping an extremely close eye on inflation data. We’re also not promising to cut rates until early to mid 2025.

Reducing rates is a tenuous and long term activity. With many of us remembering 0% interest rates in our recent history, it took many many years of negative growth and lower employment to try to stimulate the economy through desperate monetary policy. We’re at the very beginning of this next cycle and it is very important to remember that rates become lower because the economy is generally underperforming. It’s generally not something to be excited about.

At the heart of the Portworkers strike was the core issue of employment. Through additional automation and the ultimate removal of human labour in port operations, we are now looking at one of the primary drivers of unemployment. Automation is beneficial to the economy overall, by driving more efficiency – but it does come at a human cost. We cannot stop the continued move to more efficiency within business, but we do need to provide time for industry to allow human labour to migrate to new areas.

Enjoy today’s charts and forecast.

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

 Summary for Monthly Forecast: Strong Buy

*Not financial advice, please DYOR prior to any investment decisions you make.