Gold and silver are showing renewed strength as global sharemarkets struggle and volatility in oil markets surges. The ASX200 and US equities have both retreated in recent sessions as investors digest rising geopolitical tensions and unstable energy pricing. Precious metals tend to find support during periods like this, and both metals are holding comfortably above key technical levels as investors seek assets perceived as more stable than equities during uncertain conditions.
Energy markets remain the centre of global attention. Oil surged sharply earlier in the week before reversing course as traders attempted to interpret rapidly changing developments in the Middle East. Conflict involving Iran continues to evolve, with Russia and China now increasingly entering diplomatic discussions. Former US President Donald Trump has stated the conflict could be over within weeks, though the situation on the ground appears far less settled. Iran has formally installed a new religious leader following the recent escalation and, within hours of the announcement, missile launches were reported toward regional targets, signalling that a ceasefire remains unlikely in the immediate term.
While the war dominates headlines, a major economic data release is quietly approaching. US Consumer Price Index (CPI) figures are due later today and could have meaningful implications for monetary policy expectations. CPI releases typically move markets significantly, particularly for interest rate expectations, yet the current geopolitical environment may dilute the market’s immediate focus. If inflation surprises to the upside, expectations for Federal Reserve policy may tighten further, potentially adding additional volatility to already unsettled markets.
The financial cost of the conflict is also rising rapidly. Modern missile systems used by both offensive and defensive platforms can cost anywhere from several million dollars to tens of millions per unit. When deployed at scale, military expenditure can accelerate extremely quickly, contributing to already expanding government spending. Historically, prolonged conflicts have had lasting fiscal implications for participating economies.
Another longer-term consequence being discussed is the stability of the petrodollar system. Oil has traditionally been priced globally in US dollars, reinforcing the currency’s dominant role in global trade. However, China has repeatedly explored alternatives to the dollar-based oil market and periods of geopolitical disruption often renew those conversations. Should volatility in oil markets persist, Beijing may again push discussions around yuan-based energy trading or even a future central bank digital currency structure linked to energy settlement.
Markets therefore face an unusual combination of pressures, war-driven volatility, unstable energy pricing, and a major inflation reading due within hours. In that environment, it is not surprising that gold and silver are again attracting attention as investors look for stability while the broader global picture remains uncertain.
Technical Indicators FOR GOLD – Weekly Projections
Daily technical indicators – 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 |
A Central Bank Digital Currency, or CBDC, is a digital version of a country’s national currency issued directly by its central bank. Unlike cryptocurrencies, it is government backed and centrally controlled. In theory, a CBDC allows money to move instantly between institutions, businesses and individuals without relying entirely on traditional banking networks.
At a large international level, CBDCs could make practical sense. They may streamline major cross-border transactions such as energy purchases, commodities trading or large sovereign settlements, reducing friction in global trade and potentially lowering costs between countries. However, the debate becomes more complex when CBDCs are applied to everyday consumer spending. Because these currencies can be programmable, governments could theoretically place conditions on how funds are used. For example, welfare payments could be restricted so money cannot be spent on alcohol or gambling. While some see this as policy control, others view it as a significant shift in financial oversight, raising questions about privacy and how much influence governments should have over individual spending decisions.