The gold market seems poised and ready for a potential breakout, but we just need enough momentum to get through USD$1,850 in the next few weeks to confirm. US inflation remains a persistent problem for the Federal Reserve and the gold market is beginning to doubt the Fed’s ability to control it. The CPI numbers released on Wednesday this week saw US CPI remain elevated at a much higher level than the Fed’s target, coming in at 7% year on…

A warm welcome back from holidays from the team at Guardian Vaults to all of our valued clients! We have already seen some big moves in financial markets to start the new year, as the Federal Reserve turns as hawkish as ever. Tech stocks took a big hit overnight in the US with Cathie Woods Ark Invest ETF dropping -7% in a day. Interesting to see gold shrug off the latest FOMC minutes which talked of US Quantitative Easing ending…

News this week is dominated by what is being referred to as ‘China’s Lehman Brothers moment’. Property developer Evergrande shares are plummeting as there is no word from Beijing about a bail out package as yet. Finally, we are seeing this volatility spill over into other markets with the ASX down by 2% on Monday and iron ore futures getting crushed. Gold and silver have been caught up in the chaos with a flight to safety heading towards the US…

Last Friday saw the first big miss in US employment figures for quite a while. Expectations were for 720,000 jobs to be added in the non-farm payrolls data for the month of August, but the number fell well and truly short at only 235,000. The US dollar dropped, gold caught a bid, but silver was the stand out, jumping over 3% to $AUD 33.30 per ounce. We’ll take a good look at the silver price in this week’s update and…

It been a perfect storm for the gold price in AUD the past few weeks, as gold managed to climb back to USD$1,800 whilst the AUD was under pressure from a collapsing iron ore spot price and announcements of extended lockdowns across Sydney and Melbourne. But is gold shaping up for a pullback? We’ll take a look this week at the price action in metals and the AUD/USD. Firstly, to gold in USD terms; we are looking neutral if anything,…

A very volatile start to week as both gold and silver were smashed into the open on Monday morning. Silver dropped almost $2 USD an ounce and gold more than $50 USD an ounce in what was called a ‘flash crash’ during a time where market liquidity was significantly lacking. So why the dramatic move in precious metal prices? And what does it mean moving forward? We will answer these questions in this week’s update as we delve into the…

Unfortunately, the average investor cannot buy bullion at the spot price, as all bullion products have a cost basis above spot that must be covered before any margin can be made by that refinery or mint. To explain further, let’s cover an explanation of what the ‘spot price’ is: The “spot price” refers to the price in which a commodity or precious metal is trading for immediate delivery in a given market, which differs to a ‘futures’ price which has…

Monday, 2 August 2021 As lock downs continue across Sydney and other parts of the country, there is a significant economic cost which will no-doubt influence both government and central bank policy decisions, and should impact asset prices moving forward. Domestic gold investors have seen local prices buoyed by the falling AUD/USD which has retreated from 77c in June to 73.50c at time of writing, with a chance the AUD continues to lose ground if the lockdowns last longer than…

This week saw the much-anticipated US CPI data for the month of June, and the not-so-transitory inflation number surprised to the upside yet again. What is interesting to note; last month the higher-than-expected CPI led to gold selling off on heightened fears of Federal Reserve tapering, however this time the higher number saw gold catch a bid, moving up through $1,825 USD. In this week’s update we will explain why and comment on what could be a significant signal that…

BOND YIELDS PLUMMET Friday, 9 July 2021 BOND YIELDS PLUMMET A sharp plunge in Treasury yields hit markets this week. The US 10Y yield dropped to 1.29% which helped gold rise back above the USD$1,800 level. Markets are experiencing a greater than normal level of uncertainty as investors weigh up the possibilities of inflation, monetary tightening, and COVID mutations hindering the economic recovery. At least some market participants are clearly expecting weaker equity market performance from here on in, and…