Australia hits Terrible Two as Gold Market waits for Payrolls

Jordan Eliseo

The Perth Mint

It's been a somewhat disappointing week for precious metal longs. Whilst the market is still within the USD $1175 to USD $1215oz range, one might have expected a bit more strength, what with equity and bond market volatility, a softish USD, and oil rallying (notwithstanding last night). We've also seen a continuation of the soft run of data out of the USA, something you'd expect to provide some kind of bid for the metal market, as it should force investors to further push back their expectations of the first Fed interest rate hike. Technicals for the market aren't offering any clear direction either, whilst positioning is fairly neutral too. Premiums on the SGE are around $1.50 to $2.00, but all up it's a tough market to read right now. Tonights non farm payroll report may be the catalyst for the gold market to break either way, though we'll likely need to see another real disappointment (like March), or a +250k read to cause any great excitement. More detailed thoughts on the gold market, the RBA and bonds here (VIEW LINK)


Gold bull since early 2000. Have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and the causes of the GFC. Lover of markets, competition & technology

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