Market Updates

Financial markets staged a huge rally over the past few trading days, as investors treated recent central bank activity as a sign that the rapid pace of interest rate increases deployed across developed markets in 2022 may soon ease.

Asset markets suffered some of their wildest swings over the past five trading days, as a widely ridiculed mini budget delivered by Chancellor of the Exchequer Kwasi Kwarteng in the United Kingdom sparked a sharp sell-off in the UK government bond (Gilt) market, and in the British Pound (GBP).

Interest rate increases have dominated financial market headlines and investor positioning this past week, as central banks around the world continued their policy tightening path.

It’s been another tough week for global asset markets, as US inflation data, which came in hotter than expected, sparked a widespread sell off, with stocks, cryptocurrencies and precious metals all falling after the inflation results were released.

Gold prices bounced off key support levels near USD $1680 oz this past week, trading up toward USD $1,730oz at one point, while silver was an even stronger performer, up 4% in USD terms over the last five trading days.

At last week’s Jackson Hole Symposium, Federal Reserve (Fed) Chair Jerome Powell took just 8 minutes to confirm that the Fed is unlikely to pare back the aggressive pace of interest rate hikes they’ve implemented in the last few months.

Investors brace for Fed announcement while markets lull: all eyes will be on U.S. Federal Reserve Chair Jerome Powell’s speech for any indication of the Fed’s interest rate and general moves in this half of the financial year.

With Australians’ earnings not matching rising inflation, it is more important than ever to consider investment options that can hedge existing wealth against volatile economic climates.

Following new data on the US Consumer Price Index, we investigate the influences on its decrease and analysts’ projections on the Fed’s inflation management strategy, as well as assessing the ABS’s report on the Australian Consumer Price Index.

Following last week's late strength, gold rose a further 2.07% this week, with all precious metals following suit and Palladium showing a steadying pace. This week, we look to the World Gold Council to wrap up Q2 and H1, with a strong focus on gold demand.

Gold, silver and platinum are all up, despite a tough month of consistent lows. The national median house price has fallen for the first time in two years, whilst the ECB follows its interest hike with the announcement of a new strategy.

Gold maintains its position as a safe haven for wealth in times of concern and with new quarterly CPI data being released next week, investors and homeowners are rushing to add gold and precious metals to their portfolios as a hedge against rising inflation and increasing interest rates on the housing market.

Thursday’s trading session saw the yellow metal shed US$25 per ounce, with gold nearly 2% lower overall for the week. Inflation in the US shows no signs of slowing, with the market pricing in a 1% hike from the Federal Reserve Bank this month. The Euro reached parity with the US dollar, further putting pressure on gold as greenbacks become the preferred safe haven investment.

Gold’s dramatic sell-off this week has brought out the bargain hunters. A strong US dollar continues to put pressure on gold, as the Euro gets closer to parity this week…

Spot gold is marginally lower this week. The yellow metal has been largely forming a consolidation pattern over the past two weeks. Federal Reserve Bank rate increases are putting pressure on gold but US Treasury yields dipped lower, providing some relief.

Gold is down overall this week, lower by 0.66% to US$1,822. Despite falling, spot gold is holding its ground against the Federal Reserve Bank’s warnings of further aggressive rate hikes.

After a bumpy week, gold is back to the important psychological level of US$1,850. The Federal Reserve Bank shocked the market this week, raising rates 75 basis points instead of the expected 50 basis points, and the Swiss National Bank raised rates for the first time in 15 years.

Gold treads familiar waters this week, sticking around US$1,850 ahead of the June FOMC meeting. Silver jumps, platinum retreats, and central banks become more bullish on gold…

Gold rallied this week and remains above US$1,850, as a weaker than expected US jobs report put pressure on the US dollar. Platinum has its best week since the start of March, up almost 10% as automakers return to normal…

Overall spot gold rose 2% this week to US$1,853 per ounce, with an intra-week high of US$1,869.68. The May Federal Reserve minutes contained no surprises, with more aggressive hikes off the table for now and half-percent increases expected at the next few meetings.

Gold rose 0.50% this week to US$1,842, likely driven by technical buying as the US dollar fell from its two-decade high. Major US indices have had some of their worst falls since the early days of the pandemic, and stagflation fears grow in Asia and Europe.

Gold continued its fall this week, down 3.15% in total, though Au lost 1.6% in trading on Thursday night. Investors are seeking refuge in gold as equity markets are hit much harder. High inflation data and fears of a slowing global economy pushed equity markets down to 18-month lows overnight.

Gold has rebounded this week after the Federal Reserve Bank announced a May rate hike. Au dipped down ahead of the Fed meeting, but spot gold will close higher overall this week…

Spot gold was pushed down last week to back below US$1,900. Greenbacks remain strong as the Federal Reserve Bank is expected to increase rates at next week’s FOMC. Major currencies are falling compared to the US as pressure mounts on gold…

After rejecting US$2,000 per ounce last week, look for gold to consolidate between US$1,940–60 in the lead up to the May Fed meeting.