The Metals Minute w/ Phil Streible
Good morning. It’s Tuesday, October 24, about 6 a.m. Central Time. Overnight, the precious metals are weak after yesterday’s pullback. You have gold on $12.19 75. Silver down $0.24. 22. 96. Copper is down one at 358 and platinum is down 13 at 892. So a couple of things are going on in the metals markets right now. One, you have a two day short covering rally that appears to be fizzling out in the U.S. treasuries.
We’re seeing Treasury yields push up here 4.8, 6% on the ten year Treasury. Also, the two year is 5.04. So a lot of pressure right there on the markets. And then secondly, some of that safe haven rollover flow of funds that came into this gold market right around that peak from 1985 on up to the 2000, I believe, is exiting the market.
That’s the kind of that frothy money that kind of has no real home. And what it’s looking at is that rotate pushing into Bitcoin with Bitcoin up over 10%. 34,500. A lot of these people chase the markets. They’re kind of always at the tail end, you know, just just really emotionally driven and triggered. So we got bitcoin. A lot of speculation that that ETF might get approved.
So they’re trying to front run that. That’s why we’ve got a 5000 hour move in two days. So another thing here, your momentum traders, your guys, they use different systems, different moving averages. We did see gold break below that 200 day moving average, 1982. So a lot of selling going on right there, just tactical triggering. So some things that we’re watching here today, we’ve got a lot of earnings coming out.
We got Microsoft, Alphabet, GM and Visa. Who else had PMI data? Two Fed speakers want to monitor that action in Bitcoin. Now, looking at the trends here in the precious metals, gold is bullish, but it’s got to hover above. Still quite a ways down 890 1894. That would be your trade trigger to take things neutral. So a lot of times when these markets move too fast, you’ll see that trade trigger.
It takes a while to catch up. Now I think really looking at the 50 day moving average, 1927, the key level support, 1950, 1965, those are all very relevant and silver or neutral, it never got to a bullish trend. The trade trigger points 2358. Got to get above there in order to trigger that new bull wave. And then 20 to 11 on the downside for the bear trade trigger.
So the outside markets here, they’re a bit stronger. You got U.S. equities up, you got oil up about $0.30, dollar index up 42. That’s also put a lot of pressure on those in the precious metals market. So getting questions, give me a call. I’ve been gone for about four days, went to the awesome Formula one race, great time over there.
A lot of excitement. I drove back yesterday, took about 13 hours straight to drive back. So that was a little bit rough here. So off to a slow start. But if you got any questions, give me a call. 31285873. All three. Remember, futures option trading does involve risk. Loss may not be suitable to all investors. Good luck and good trading.