Aussie Jobs Fall as Gold and Silver Spike Aggressively

From its lowest point yesterday, gold rose $100 AUD per ounce. Silver continued its aggressive series of daily increases as well, closing on another 3% rise against AUD. A series of data releases set the markets in motion overnight, and that direction was defensive.

The US Dollar began falling against other major currencies as yields retreated. This would normally help AUD; however, Australia got hit with its own bad data. Full-time employment dropped by 56.5K jobs, and the participation rate fell as well.

As silver continued rising, gold joined.

The AUD ended up joining the USD’s weakness and accelerating precious metals’ relative rise. This also helped pull the rug out from under the Reserve Bank of Australia’s recent tough talk about controlling inflation by hiking interest rates. This goes to show that even a monolithic entity, such as a central bank, can be checked within 24 hours by a data release.

Fundamentally, the current economic system relies on ever-increasing liquidity. Central bank speakers have recently been very defensive about this topic, but we have been hearing more and more about them fixing up the “plumbing”, and other terms that avoid the dreaded “QE”.