Santa Claus Rally Upcoming?

Ved Shah

Good day ladies and gentlemen and welcome back to The Australian Gold Mid-Week Review! It's the final leg of the year and gold is trying one last time to break the barriers and continue the pace of its unprecedented rally, which it derailed from in October. Gold is currently trading at above US$4,200/oz, with this week's high surpassing the US$4,250/oz mark.

Currently, it appears that a series of dovish comments by Fed officials have boosted rate cut hopes to nearly 90% for December, pushing gold prices up to US$4,250/oz, before traders started taking profits yesterday, leading gold to drop back to the US$4,200 range. Traders are now awaiting key economic data to make their decisions, namely the ADP employment figures, the ISM services index, and the PCE price index. This data will further fuel or deflate the probabilities of a rate cut in December and has huge potential to increase or slump gold prices before the end of the year.

However, considering the long-term case for gold, we recently made a video comparing gold to Australia's darling asset: property. No, don't click off just yet! We understand property purchasing decisions are multifaceted, and hence we aren't discouraging you from purchasing property at all. The purpose of this video is to compare gold and property exclusively as investment assets, removing all other factors such as security, peace and the desire to grow as a family across generations in a single home. The question we tried to look into in this episode is: "In 2025, would I rather invest in gold or property, considering my only objective of purchase is to earn a return on my investment without ever actually residing in that property?" Answering this question is particularly important as property prices are now at an all time high in Australia, increasingly outpacing wage growth. It is also important to consider that property investments are leverage driven, unlike gold, which almost never requires leverage to invest (unless bought in humongous volumes, which is unlikely for retail investors like me and you).

Meanwhile, silver is cruising at an all-time high of US$58/oz, and oil is reaching for the US$60/barrel mark.

However, this week the ASX-All Ordinaries Gold Index has remained flat at 17,618.45 points, as it continues to track price movements in the yellow metals. We await the December quarter reports to see what's in store for our gold producer stock prices.

And that's it! Thank you so much for tuning in to this week's mid-week check in. Later this week, we will be recording a video where we delve deeper into the property v/s gold discussion. We'll be delving into the investment life cycle of property and comparing it to gold. We'll also be looking into the interesting story of West African Resources (ASX: WAF) and what lies ahead for the company, so stay tuned!

Also, we're excited to introduce our new 30-day educational campaign, Decoding the Economy in 30 Days - a daily series designed to simplify key financial and economic concepts for everyday investors. Each day, we'll share a short, easy-to-understand insight that connects economic trends with gold and broader market movements. The content will be shared across Instagram and YouTube Shorts, making it quick, visual, and easy to follow.

Follow along and strengthen your understanding of how the economy really works - one concept a day. Our Instagram handle is @aust.goldfund and you can access our YouTube here!

PS: None of the content in this article, including the linked video as well as the contents on our social media handles (Instagram, YouTube, LinkedIn, X, and other applicable social media handles) qualifies as financial advice. Please seek a licensed expert before making any investment decisions.