Good morning. It’s Monday, October 9th, about 6 a.m. Central Time. Overnight, the prices are stronger after Friday. Short covering rally. You’ve got gold up $18, 1863. Silver up five 2178. Copper’s up to at 365 and platforms up eight and 899. The only metal that’s down here is palladium through its down about $6 trading at 1156. Right now all the firm foreign currencies are significantly weaker.
The only ones that are getting the safe haven bid are the U.S. dollar index and the Japanese yen. So Middle East tensions with Hamas launching a surprise attack on Israel. The conflict caused safe haven assets to surge gold. The U.S. dollar, treasuries and oil are all up significantly. So looking at some things that I’m going to be watching here, kind of the retail investors reaction to this, once these markets start to open up in the U.S. hours, how does that play out?
Do they continue to pile into some of these assets or some of the assets that have been beaten up so bad? Do they start to pull some of that off? A lot of times people have been desperate to get out of particular trades that they like to call time out, reassess it. So if they’ve been long gold and they bought on this pullback, say at 1850 and they wrote it all the way down in the 1820s, they get the short covering rally.
It’s a relief rally for them. Then they get this surprise attack and it caps off for them. Do they take that position off, call time out, work new stops if it’s going to break out to the upside on their positions or they shift to a different type of trading strategy, buy some longer traded call options. And if things tend to tend to calm down and the Fed stays the course, will the gold market continue to bleed off?
So that’s kind of how the way I interpret it and how that I’m going to watch it. And here there’s a gap on the charts a lot of times of a trades within that gap for any kind of degree of period of time, it will fill the gap as well. So a lot of a little bit of technical things in nature aside from what those geopolitical risks are.
So you do have three Fed governors are due out to speak today. Also, earnings season is going to get underway. The current trends still on the metals are bearish gold and silver. But after Friday short covering rally you should people that were short should have covered those positions. So it seems to be a bit of a reset on the metals here.
The stochastic Samadi are both starting to rise from oversold oversold territory, which is a good thing as well if you’re on the bullish side. So the trend reversal points to like gold 1926 We got some ways to go. The 200 day moving average, 1981, the resistance point 1863 and 1870. So we’re at the resistance point right now on the algorithms, daily projected resistance point and then 1870, that’s where we’re at on here.
So I’m really going to watch it. If it goes and it shoots up and it breaks out to the upside, it’s got to trade above today’s high for a least 30 minutes before I would think that it has any kind of floor. And it’s going to go up from there. Your support levels are obviously a lot lower, 1835, 24 and 1813 Silver Again, that one’s also bearish trend.
It did really fail here. You know, as far as the price action, it up only $0.04. That’s not the response that I’d be looking for. I would think we would be up about $0.30, which would be closer to the higher today day, at least not all north of $22. So that what I’m a little bit suspect on the trend reversal point 2346 200 day moving average 2404 much higher than where we’re at your resistance point 2209 2242 in 2022 74 So big ranges to the upside, so big pockets.
So once silver gets move in, it’s going to really move. Your support levels are 2142 2107 2073 outside markets obviously weaker and they were firmly there, firmly lower in the overnight session. So they never even went positive, not even close the dollar up 46 106 25 Crude oil up 4%. It’s trade not at $86. And then finally, your ten year Treasury yields, they’re coming off.
So this might be a start of a trend here, 4.7, 4% down three. Let’s look at the chart here. Kind of at the lower end, pushed up to the upside consolidating, but at the lower end of that range. So hopefully it could break down, make some new lows. Got a questions. Give me a call 3128587303. Remember, it is a holiday today.
So there’s a bank holiday. So the banks are going to be open. So I’ve got margin calls. You might have to lighten some things up. My number 3128587303. Remember, futures option trading involves risk loss may not be suitable to all investors. Good luck to trading.