Market Consolidates in Record Month for Gold and Silver!

Precious metal markets have continued to consolidate this week, with gold currently on track to end the month trading above USD $4,000oz.

Despite the near 10% pullback from the intra-month highs in recent days, gold is set to record another positive monthly return in October. Meanwhile, silver looks like it will close out the month trading near USD $49oz, which would be a gain of near 7% relative to prices at the end of September.

The price action that we have seen in the past month is exactly the kind of market behaviour one would expect at this stage of a secular bull market. We have had a super spike, a sharp correction, and now a period of consolidation, with the latter part allowing the froth to dissipate from the market, and long-term accumulators the chance to add to their holdings at lower prices.

The movements in metal markets that we have seen in October, especially gold’s move above USD $4,000oz, have also well and truly made precious metals front page news again, with a surge not only in global demand, but also demand in Australia.

ABC Bullion has been at the forefront of this, with transaction volumes, account openings, and sign-ups to the ABC Bullion Gold Saver program running at anywhere from six to ten times the volumes we would see in other periods.

We expect recent buyers of precious metals will be rewarded in due course, with the tailwinds of higher inflation, strong central bank buying, low real interest rates and the need for portfolio diversification likely to lead to much higher gold prices in the years to come.

For more information on the case for precious metals – please access our gold, silver and platinum investment guides.

Thank you for choosing ABC Bullion.

Jordan Eliseo
General Manager, ABC Bullion

Luke Tyler
Market and Business Analyst, ABC Bullion

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