The latest US GDP figures have come in below expectations, reinforcing the narrative that the American economy is cooling more quickly than forecast. Sluggish growth figures add weight to the US Federal Reserve’s recent decision to cut interest rates, as policymakers attempt to cushion the slowdown without reigniting inflation pressures.
A softer GDP print does not necessarily signal recession, but it does suggest momentum is thinning. For markets, that matters. When growth slows and rates begin to fall, capital often rotates into defensive assets. That backdrop has historically been constructive for precious metals.
Meanwhile in Australia, mortgage stress has re-emerged as a serious economic theme. With rates elevated and household buffers eroding, many homeowners are absorbing significantly higher repayments. Businesses, facing higher debt servicing costs and increased input expenses, are responding in the only way they realistically can, by lifting prices again.
This is where the concern deepens.
If businesses raise prices to cover costs, inflation remains sticky. If inflation remains sticky, rates stay higher for longer. If rates stay higher for longer, households and businesses remain under pressure. That cycle can become self-reinforcing if productivity does not improve or demand does not meaningfully slow. The question being quietly asked is whether Australia is caught in a slow-burn inflationary loop.
Against this backdrop, bullion continues to assert itself.
Gold and silver have both printed four consecutive green daily candles, signalling renewed upside momentum. While short-term technical moves can reverse quickly, sustained buying across multiple sessions typically reflects broader positioning rather than isolated speculation.
Periods of slower growth combined with inflation uncertainty have historically supported demand for hard assets. Precious metals are not growth assets, they do not generate earnings, but they do tend to respond positively when confidence in monetary stability softens.
Bullion’s role in portfolios during inflationary or rate-cut cycles is not about short-term trading. It is about purchasing power preservation. When currencies are diluted through inflation or policy easing, finite assets often attract steady capital flows.
For now, markets are balancing slower US growth, persistent Australian inflation pressures, and evolving central bank responses. Precious metals appear to be benefiting from that tension.
Technical Indicators – Weekly Projections
Daily technical indicators recommend a Strong Buy, leading into weekly projection of Strong Buy
Weekly technical indicators chart.
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Buy |
| MACD(12,26) | Buy |
| ADX(14) | Overbought |
| Williams %R | Buy |
| CCI(14) | Buy |
| ATR(14) | High Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
GDP (Gross Domestic Product) measures the total value of goods and services produced within a country over a specific period. When GDP “misses targets,” it means the economy grew more slowly than economists expected. Slower growth can lead central banks to cut interest rates to stimulate activity and those rate cuts often influence asset prices, including gold and silver.
