Gold Throws Just-in-Time Surprise as Holiday Season Begins!

Ved Shah

Good evening ladies and gentlemen, it's that time of the week again! Welcome to the Australian Gold Mid-Week Review, a series where we aim to increase your precision in understanding and timing the markets with a mid-week sneak peek into everything ongoing in the precious metals market.

Well, it's almost holiday season and it seems gold is here with its surprises, after a long period of consolidation, which followed after a gigantic rally in October. This week, gold is currently trading at US$4,153/oz, after testing the $4,000/oz range for the last couple of weeks. It's surprising to see how the rate cut narrative has turned completely on its head since the government shutdown has ended and official economic data have hit the databases once again. The probability of a December rate cut now stands at above 80%, as the labor market, coupled with consumer spending appears to be weakening. Particularly, retail sales rose just 0.2% in September, following a stronger gain in August, which ultimately increased rate cut probabilities to above 80%, compared to a mere 40% just a couple of weeks ago. The US-Dollar index has also fallen below 100 to 99.714 this week, which may have also contributed to this rally.

Meanwhile, silver, as usual, has followed suit with gold as it has climbed above US$50/oz once again, now trading at nearly US$52/oz after a disappointing plunge last week.

And finally, the ASX-All Ordinaries Gold Index. At this point, Australia's theme parks should make their loopiest, most thrilling rollercoaster ride of all time and call it XGD (honestly, XGD already sounds like a rollercoaster model name.) The index climbed to 17,201.34 points as of today, rising 728 points this week (within a span of 2 days only.) As usual, it seems that our miners are following suit with their beloved yellow metal. Our managing partner Brian has discussed the relationship between gold prices and mining stocks in the last two episodes of The Australian Gold Weekly Review, so go check them out to know more!

And that's it! Thank you so much for tuning in to The Australian Gold Mid-Weekly Review! Given this series is of a bite-sized nature, we sense you're not even halfway through your hot chocolate. To continue enjoying your cup of hot chocolate, we suggest you add back the marshmallows you've already eaten and tune into The Australian Gold Weekly Review playlist here! And, keep those cups refilling, as we'll be back on Sunday with Episode 18 of The Australian Gold Weekly Review! This holiday season, we wanted to dig into something that's been the cornerstone of every adult gathering during holiday and other seasons in Australia: the beloved Australian property. Is investing in property still the best option for Australians? What does gold offer that property doesn't? And, is gold ultimately a greater asset than property? Tune in this Sunday to find out. Can't wait? No problem. Check out our most popular video to date here with young Australian investor Cameron Knezevic, who explains why he has ditched property to invest in gold and silver!

We hope this series has been adding value to your investing journey so far, and are excited to keep bringing you exclusive, insightful content to boost your investment journey. Until next time, see ya!