US Jobs Drought Fuels Gold Rush as Australia's Debt Tops $61 Trillion
The gold price surged to $4550 (A$6910) this week after the US non-farm payrolls unexpectedly dropped by 23,000 jobs in July. The result was a softer US dollar and a stronger gold market.
The US Treasury also doubled its planned buybacks of long-dated debt, which led to an unexpected rally in bond markets. This move, combined with the weaker non-farm payrolls, sparked concerns about further rate hikes and had a significant impact on the global economy.
Australia's own inflation architects are celebrating after federal debt blew through the trillion-dollar mark, leaving taxpayers funding record government spending while managing higher taxes and a cost-of-living crisis. Meanwhile, Australia's healthcare index saw an unexpected 14% jump in just one week, with former market darling CSL leading the charge.
In other news, BHP surged nearly 7% as copper prices remained strong, while New Zealand's OceanaGold made a $776 million bid for Ausgold's Katanning gold project in Western Australia. The resources sector continues to be a major driver of Australia's economy, and companies are taking notice.