Good evening ladies and gentlemen, welcome back to The Australian Gold Mid-Week Review! We hope you have been benefitting from this series by gaining an insight into what drives gold and gold stock prices intra-week.
This week has been yet another rollercoaster ride for the yellow metal. Wake up one morning, and it's testing the US$4,000/oz mark. Wake up the next, and it's reaching for US$4,100/oz. At the moment, it's currently testing the US$4,100 mark and hovering between US$4,075/oz and US$4,100/oz. Earlier in the week, gold prices fell to nearly US$4,000/oz as the probability of a December rate cut fell to ~45% from 68% last week, after Fed officials commented on the need for Fed to execute their rate cut approach fairly. However, today, traders have opted for risk-averse trades, as they pushed gold prices back to nearly US$4,100/oz, as they await official economic jobs data for the first time since the cessation of the government shutdown. It will be interesting to see the jobs data that releases this Thursday, and the impact it may have on gold prices. Weaker than expected data can push gold past US$4,100/oz, but what remains reasonably certain at the moment is that the US$4,000/oz mark is acting as a really strong support level. Considering the structural demand for the metal, how far down can gold drop in the short-term if the Fed doesn't cut rates, and how does that influence the medium and long-term demand for gold? Stay tuned for Episode 17 of The Australian Gold Weekly Review releasing this Sunday, where our managing partner Brian Chu will break it all down for you, as usual!
Meanwhile, silver is following suit with gold, as investors are seeking safe-haven and that metal has yet again crossed US$50/oz and is currently trading in the US$51-52/oz region.
And finally, the ASX All Ordinaries Gold Index has taken a slump, as it's down to 16,600 points, falling by 526 points this week. It seems that gold mining stocks are still following suit with gold, with the price of the yellow metal being their primary valuation driver at the moment. Yesterday, when gold was down to nearly US$4,000/oz, gold stocks plummeted nearly ~5-7%. Today, they're back up ~2-3%. With the gold stocks valuation index still hovering in the overbought range, when will gold producers sway from being primarily valued on gold's daily moves? Stay tuned for The Australian Gold Weekly Review to find out!
And, that's it! Thank you so much for tuning into our mid-weekly article, we hope you've been enjoying this series so far! We'll see you soon at The Australian Gold Weekly Review on Sunday, stay tuned to keep your investing journey supercharged, and ahead of the curve!
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