Guardian Gold Weekly Market Update
Welcome to our weekly market update, covering moves across various financial markets, with a quick look forward to upcoming data releases.
Last week’s market moves:
Precious Metals (in USD):
Asset | Jan 20 Price | Jan 24 Price | % Change |
Gold | $2,702.19 | $2,769.00 | +2.47% |
Silver | $30.24 | $30.59 | +1.15% |
Platinum | $938.00 | $955.00 | +1.81% |
Data sourced from Exchange-Rates.org and Kitco.
Precious Metals (in AUD):
Asset | Jan 20 Price | Jan 24 Price | % Change |
Gold | A$4,359.00 | A$4,383.00 | +0.55% |
Silver | A$48.78 | A$48.39 | -0.79% |
Platinum | A$1,515.00 | A$1,530.00 | +0.99% |
Data sourced from Guardian Gold.
Equity Markets:
Index | Jan 20 Close | Jan 24 Close | % Change |
S&P 500 | 5,996.66 | 6,095.00 | +1.64% |
ASX 200 | 8,310.40 | 8,408.00 | +1.18% |
Data sourced from LPL Financial.
Cryptocurrency:
Asset | Jan 20 Price | Jan 24 Price | % Change |
Bitcoin | $102,100 | $104,560 | +2.41% |
Data sourced from CoinMarketCap.
Currency Exchange:
Currency Pair | Jan 20 Rate | Jan 24 Rate | % Change |
AUD/USD | 0.6199 | 0.6312 | +1.82% |
Data sourced from Exchange-Rates.org
Commentary:
Precious metals saw significant gains, with gold and silver in USD terms rising by 2.47% and 1.15%, respectively.
Equity markets continued their upward trajectory last week, with the S&P 500 and ASX 200 indices posting gains of 1.64% and 1.18%, respectively. This positive performance was supported by strong corporate earnings reports and optimism surrounding potential fiscal policies from the new U.S. administration. Bitcoin experienced a notable rise of 4.46%, reflecting ongoing risk appetite. The Australian dollar appreciated against the U.S. dollar, closing the week at 0.6312, an increase of 1.82%, influenced by favourable trade data and commodity prices.
Outlook for the Week of January 27 to January 31, 2025
As we look ahead to the upcoming week, several key events and economic data releases are poised to influence financial markets:
Economic Data Releases:
- Wednesday, January 29:
- Australia Consumer Price Index (Q4 2024): Measures inflation and may impact Reserve Bank of Australia’s monetary policy decisions and therefor AUD/USD exchange.
- Thursday, January 30:
- U.S. Gross Domestic Product (Q4 2024): Offers a comprehensive view of economic growth during the last quarter.
- Friday, January 31:
- China Manufacturing and Non-Manufacturing PMIs (January): Indicate the health of China’s economy, with potential global implications.
Central Bank Activity:
- Wednesday, January 29:
- Federal Reserve Interest Rate Decision: The Federal Open Market Committee (FOMC) will announce its policy decision, with markets anticipating guidance on future rate adjustments.
Investors should monitor these events closely, as they have the potential to influence market volatility and inform investment strategies in the coming week.
Recent Developments in AI: China’s DeepSeek Emergence
In late January 2025, the technology sector experienced significant turbulence following the rapid ascent of DeepSeek, a Chinese AI startup. DeepSeek’s AI assistant application quickly became the top free app on the U.S. iOS App Store, surpassing established platforms like ChatGPT. This swift rise has been dubbed a “Sputnik moment” for American AI, highlighting a pivotal shift in the global AI landscape.
Key Highlights:
- Efficient Development: DeepSeek developed its AI model using approximately 2,000 Nvidia H800 GPUs over 55 days, incurring a cost of around $5.58 million. This approach is notably more resource-efficient compared to its Western counterparts, which often require significantly higher investments.
- Market Impact: The emergence of DeepSeek led to a substantial sell-off in U.S. technology stocks, with major companies like Nvidia and Broadcom experiencing significant declines. The event wiped approximately $1 trillion off U.S. stock valuations, underscoring the profound impact of DeepSeek’s entry into the AI market.
Implications:
DeepSeek’s rapid success has prompted discussions about the future of AI development and the competitive dynamics between China and the United States. The startup’s ability to produce a competitive AI model at a fraction of the typical cost challenges existing paradigms and raises questions about the effectiveness of current U.S. export restrictions on advanced AI technologies.
Furthermore, DeepSeek’s data practices have come under scrutiny. The app collects and stores user data on servers located in China, leading to national security concerns reminiscent of those associated with other Chinese applications.
As the situation evolves, stakeholders in the technology and investment sectors are closely monitoring the developments surrounding DeepSeek, recognizing its potential to reshape the global AI landscape.
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