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Overnight, the precious metals are higher after yesterday’s correction with the surprise uptick in inflation data. You have gold up $19 at 1902, silver up $0.31 at 2227. Some divergence happens with weaker Chinese data overnight. Where copper is unchanged at 359 and platinum is down seven at 868. So it’s really the geopolitical headlines that are really driving the precious metals right now.
You’ve got crude oil prices rising 4% overnight after the U.S. tightened sanctions on Russian crude oil sales. As of this recording, crude oil is pushing through $86 on the November contract, up 3.14 cents. Also, you have Israel’s army had ordered an evacuation of 1.1 million people within Gaza City while an Iranian foreign minister who met with Hezbollah did not rule out a new front in the war.
So really, some of these headlines are starting to implicate that there may be a drawing of other outside influences into this conflict. Looking at the current trends and resistance points within the precious metals, both gold and silver, the trends are still bearish, but we’re getting closer to those trend reversal points and the gold market. It sits right near the 50 day moving average, which is 1924.
The trend reversal points 1926 50. So expect a lot of resistance around that area, about $25 higher from where we’re trading at as of this recording. The 200 day moving average sits at 1981 and then your key levels of support, call it today’s low 1881, 1872 and 1863. Your resistance points. 1909 and 1915. The current trend on silver also bearish the trend reversal points in at 2324, right around the 50 day moving average, which is 2319, the 200 day moving average sits closer to 24 bucks and your resistance levels are 20 to 45 and 20 to 69.
Your key levels of support. We really don’t want to see a trade back below $22 below. That would be 2179 and also 2159. So the outside markets are mixed right now. You’ve got the dollar index on change, you’ve got Treasury yields, big sell off, especially a big reversal from yesterday. They really do believe that that headline number yesterday kind of put the interest rate hike back in the cards.
But the escalation in the conflict has eviscerated that expectation for that interest rate hike with ten year Treasury yields down ten basis points right now at 459. So we’ll keep an eye on these markets here. I’ll put out an article on Kitco. If you got any questions, give me a call. I’d love to talk to you. 312858733. Remember, futures and options trading does involve risk.
Loss may not be suitable to all investors. Good luck and good trading.
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