Current Prices: Gold USD 2039.60/oz (AUD 3105.34) And Silver USD 22.96/oz (AUD 34.95)
Gold prices reversed from intraday high on Wednesday after Federal Reserve Chair Jerome Powell pushed back strongly against expectations of a U.S. rate cut by March. Spot gold was rising as much as 1% earlier in the session but ended up 0.11% trading near $US2039.09 an ounce at the US close. Overall gold was down 1.3% for Jan but has held above the $2000 per ounce psychological level so far this year. Silver however fell 0.98% trading near $US 22.93 per ounce at the close.
US share markets tumbled on Wednesday. The US Federal Reserve held interest rates steady, while hinting that no rate cuts were imminent, in a blow to investors who were hoping for a dovish policy pivot as early as March. With around an hour left of trade on Wall Street, the Dow was down 0.2%, the S&P 500 index shed 0.4% and the Nasdaq index dropped 1.3%. In January, the Dow rose 2%, the S&P 500 gained 2.7% and the Nasdaq jumped 2.2%.
US government bond yields slid on Wednesday after the US Federal Reserve left benchmark interest rates unchanged at 5.25%-5.50% and said it doesn’t expect to cut rates until there is more evidence that inflation is moving lower. The rate decision followed their lease of data earlier in the day showing signs of cooling in the US labour market. The US 10-year Treasury yield fell by 10 points to 3.96%. And the US 2-year Treasury yield dipped 14 points to 4.22%.
Currencies were stronger against the US dollar in European and US trade. The Aussie dollar lifted from US65.59 cents to US66.22 cents and was near US66.00 cents in late US trade.
In US economic data, ADP private payroll jobs rose by 107,000 in January (survey: +150,000). The employment cost index lifted 0.9% in the December quarter (survey: +1%). MBA mortgage applications fell by 7.2% last week (prior: +3.7%).
Australian gold prices rose by 0.65% ($20 per oz) to AUD 3104.98 at the US close.
Australian silver prices fell by 0.42% ($0.15 per oz) to AUD 34.93 at the US close.
The current Gold and Silver Ratio is 88.98
Current AUD/USD is 0.65661
Gold (Yellow) vs Silver (White) vs ASX200 (Green) YTD Returns
Gold (Yellow) vs Silver (White) vs ASX200 (Green) Rolling 12 Month Returns
To follow our market commentary and more, create a free trading account online HERE.
Featured Product
Follow Us On Socials
Disclaimers: Guardian Gold, Registered Office, Scottish House, 100 William Street, Melbourne, Victoria, 3000. ACN 138618176 (“Guardian Vaults” & “Guardian Gold”) All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher and/or the author. Information contained herein is believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation. Guardian Gold, its officers, agents, representatives and employees do not hold an Australian Financial Services License (AFSL), are not an authorised representative of an AFSL and otherwise are not qualified to provide you with advice of any kind in relation to financial products. If you require advice about a financial product, you should contact a properly licensed or authorised financial advisor. The information is indicative and general in nature only and is prepared for information purposes only and does not purport to contain all matters relevant to any particular investment. Subject to any terms implied by law and which cannot be excluded, Guardian Gold, shall not be liable for any errors, omissions, defects or misrepresentations (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (direct or indirect) suffered by persons who use or rely on such information. The opinions expressed herein are those of the publisher and/or the author and may not be representative of the opinions of Guardian Gold, its officers, agents, representatives and employees. Such information does not take into account the particular circumstances, investment objectives and needs for investment of any person, or purport to be comprehensive or constitute investment or financial product advice and should not be relied upon as such. Past performance is not indicative of future results. Due to various factors, including changing market conditions and/or laws the content may no longer be reflective of current opinions or positions. You should seek professional advice before you decide to invest or consider any action based on the information provided. If you do not agree with any of the above disclaimers, you should immediately cease viewing or making use of any of the information provided.