ABC Bullion Monthly Market Update November 2024

In this months market update:

• Precious metal markets have stabilised in early December trading, with gold currently sitting above USD $2,630 and AUD $4,050 per troy ounce (oz).

• Silver has also steadied, last trading above USD $31.20 and AUD $48.40oz

• Recent price action follows a long-overdue correction in both metals that took place during November, with both gold (-4% in USD terms) and silver (-8.6% in USD terms) ending the ‘winning streaks’ they had been on for most of 2024.

• The recent pullback in metal prices has been a healthy development for the market, with sentiment and investor positioning, which had become stretched, returning to healthier levels.

• The price action in gold and silver has also occurred against a backdrop of surging risk assets, with the S&P 500 seeing a +5% move in the last month, Bitcoin topping USD $100,000 for the first time, and investor positioning reaching extremes of bullishness.

• Both gold and silver are still on track to record strong gains across calendar year 2024, with returns of more than 30% for both in AUD terms.

• The outlook for precious metals remains positive as we approach the new calendar year, with inflation still at problematic levels, interest rates falling, and geopolitical risk at heightened levels, while the potential for investor rotation into safe havens is likely to come into play once the frenzied speculation in risk assets comes to an end.

 More details can be found in our latest monthly report.