Market Updates

Precious metal markets saw one of their first meaningful pullbacks of the year this week, with gold prices falling below USD $2,900 per troy ounce, while silver is now trading just below USD $31.50oz.

Pullbacks of this nature are a healthy and unavoidable component of the market cycle and will help to remove some of the froth and excess speculation that has built up in the gold market in recent months.

Precious metal markets continued to see price strength this week, with gold hitting a new all-time high above USD $2,950 per troy ounce (oz), while silver is now trading above USD $33oz.

In This Week's Market Update:

Precious metal markets continue to trade near record levels, with gold currently trading above USD $2,900 and AUD $4,600 per troy ounce.

Silver has also surged above USD $32 and AUD $51oz, in one of its strongest starts to the year we have seen.

The latest ABC Bullion Monthly Market Update looks at recent trends in gold and silver markets, including

• January performance for gold and silver in multiple currencies

• Relative performance for gold vs equities and against key commodities.

• Gold’s relationship with interest rates and longer term bond yields

• Inflation dynamics and the gold market.

• Market positioning, and recent movements in the ETF and futures.

To place your order, please access your account at abcbullion.com or call the ABC Bullion sales and client services team on 1300 361 261 Monday to Friday 8.30am – 6.00pm (AEST) or Saturday 10.00am – 3.00pm (AEST).

The precious metal bull market has kicked into higher gear this week, with gold and silver now trading above AUD $4,500 and AUD $51.50 per troy ounce respectively.

Unsurprisingly, the spike in prices, and the economic backdrop in which it has occurred, has led to a notable uptick in turnover at ABC Bullion, as well as new account creations, with more and more investors deciding 2025 is the year to add bullion to their portfolio.

Silver is currently trading near AUD $50 per troy ounce (oz), having risen from closer to AUD $35oz just over a year ago.

That is a return of over 40%, with the recent price strength putting silver “back on the map” for investors looking to allocate capital.

• Gold prices continued their strong start to the year this week, with prices holding near USD $2,700 and AUD $4,400 per troy ounce (oz).

• Silver also remains well bid, currently trading just over USD $31 and AUD $50oz.

• The price strength we are seeing in precious metal markets is being mimicked in risk assets, with equities rallying in the first two weeks of 2025, while Bitcoin has reclaimed the USD $100,000 mark.

• Despite the strength in precious metal markets, and the multitude of factors that give the market such a positive outlook, sentiment remains muted, with investor allocations remaining at the lower end of historical ranges.

• Gold’s performance relative to equities will be one the key dynamics to observe this year, with the relationship between these assets approaching a crucial point.

Precious metal markets have started the New Year on positive footing, continuing the solid momentum that saw them generate market leading returns in 2024

Gold steadies as Santa Rally continues across markets!

In this month's 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.

Precious metal prices remained in correction mode this week, with the gold price falling to USD $2,575 per troy ounce (oz). Silver has also been on the back foot, falling to USD $30.54oz, with the gold to silver ratio currently sitting at 84.

Month to date, the two precious metals have fallen by 7% (gold) and 9% (silver) in USD terms, with long-term precious metal investors adding to their holdings through this period.

The ABC Bullion monthly market update for September 2024 is now live.

The first in its series, the update contains a series of charts and graphs looking at gold and silver performance, both in US and Australian dollars, as well as a range of other currencies globally.

The ABC Bullion monthly market update also contains a section on precious metals vs the markets (where we compare performance to other assets like equities and key drivers of gold like inflation and real yields) as well as precious metal market positioning.

Gold prices surged by 4% this week, with the precious metal hitting a series of all-time highs as it pushes toward USD $2,700 per troy ounce (oz).

ABC Bullion are offering reduced premiums on select products in our silver range, including the 5-kilo ABC Bullion cast bar. This product, the largest bar in our range, provides exceptional value, and is available from as little as $200 above spot.

Precious metal market performance was mixed this week, with gold holding firm above USD $2,500oz, while silver saw a minor pullback, falling by 3% to USD $28.80oz.

Precious metal markets continued to rally this week, with markets looking ahead to the coming monetary pivot from the US Federal Reserve (The Fed), which was all but confirmed by Fed Chair Jerome Powell at the just completed Jackson Hole symposium.

ABC Bullion are proud sponsors of the 2024 Australian Gold Conference. Hosted over two days next week from Tuesday 27th to Wednesday 28th at Crown Towers in Sydney, the event promises to be a great showcase for the precious metal industry and cover all the reasons investors should be looking at gold and silver today.

Silver has rallied strongly in the past twelve months, with the precious metal rising by more than 25% in the year to mid-August.

Precious metal prices rallied strongly last week, with gold charging to a new all-time high when it topped USD $2,500z. Silver also rallied, +3% for the week, with the gold to silver ratio falling to 87.

Markets were whipsawed this week, with everything from cryptocurrencies to large cap equity market indices seeing some of their biggest crashes on record. The proximate cause of the spike in the volatility was the move by the Bank of Japan (BOJ) to both hike interest rates and decrease the amount of government bonds it would purchase going forward.

Precious metal prices rallied strongly this week, with gold pushing back toward all-time highs, as tensions in the Middle East and market expectations around the commencement of an interest rate cutting cycle by the US Federal Reserve (the Fed) combined to push the yellow metal higher.

Precious metals sold off sharply this week, with gold (-4%) and silver (-9%) witnessing one of their sharpest pullbacks on record, after a strong six months to start 2024 that has seen both precious metals rise by more than 20%.

Precious metal prices powered higher in early week trading, with gold at one point hitting new all-time highs in USD terms, above USD $2,450 per troy ounce (oz).

Precious metal prices have risen in the first week of the new financial year, led by silver, which has increased by 5% in USD terms, and is now back trading above USD $30 per troy ounce (oz).
Gold was also stronger, rising by 1% to USD $2,355oz, while in Australian dollar terms, the precious metal is trading above AUD $3,500oz.

With two days to go in the financial year, both gold and silver are on track to record bumper gains, with the two precious metals up by 22% (gold) and 27% (silver) respectively in the last 12 months.

Precious metals were back in bull market mode, with gold and silver rising by 2% (gold) and 5% (silver) respectively in USD terms. The rally in precious metal prices saw silver reclaim the critical USD $30oz price point, with the gold silver ratio falling to 77.