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Good morning. It’s Thursday, October 26, about 6 p.m. Central Time. Overnight, the precious metals are firmer. You have December gold up $2.19 97. Some silver up $0.11, 23, 11 December, copper up one at 360 and January, Platinum up four at 916. So some overnight news you have Israel launches the next raid in Gaza in preparation for what they call the next stage.
A few other things that came out, couple of headlines here. We did have the United Autoworkers come up with an agreement. And I believe that that’s what really got in preparation of that. The platinum market pushing higher. You also saw palladium and aluminum all pushing higher on that kind of news. Now, some things that I’m watching here today, you have GDP expected at 4.5% on an annualized basis.
They note they note that consumer spending and also travel are the main contributors to that upward revision. Whether or not good news is good news for the market, we’re not sure. We’re going to have to wait and see at this point for a while. Every time we would have stronger news that comes out or stronger economic data, we would see those expectations for additional interest rate hikes coming out in the market would have a setback on that.
Specifically, like the gold, the silver market, U.S. dollar would have some strength and U.S. equities would come under pressure. But I don’t think we’re going to see that anymore. We only have about a 6% chance that the Fed raises rates at the next meeting and about a 27% chance at the December meeting. I really think that the pause is here and it’s here to stay.
So a couple other things here that we’re going to be watching initial claims, durable goods, and then we have earnings report coming out from Intel and Amazon. Some of that came out yesterday after the bell was Facebook came out much better than expected. We saw that the U.S. equities really lift off their lows. We saw Facebook up. And then as the day progressed and the overnight session progressed, the earnings call came out and it was really downbeat.
Facebook’s down about 4% right now. So you do have U.S. equities under quite a bit of pressure at the moment. Now, looking at gold and silver, specifically, gold is in a bullish trend. Silver is in a neutral trend. Things that we’re going to be watching here, obviously that 2000 mark on the December gold, We’ve got to close above that and build after that in order to kind of sustain this rally.
You have an easy position here or an easy level to watch if you are currently long in that market. If you do see it closed below 1965, will most likely see a washout down to the 50 day moving average, which is 1929. Your trend reversal point is 1911, so that’s making a big move higher here in the overnight session that if you look at the silver market, it’s still neutral at the moment.
You’ve got to get above 2342 really in order to break out. It’s kind of been flirting on either side of the 50 day moving average. The next level of resistance is going to be 2397. Your key levels of support. But yesterday’s low here. So you come in to that 2380 level, and then below that it’s going to be 20 to 16.
So the outside markets are mixed. You’ve got the crude oil market down a dollar 59. You’ve got the the December dollar up 28 at 163. U.S. equities down 33 points on the S&P 500 and then ten year Treasury notes, 4.98%. So really pushing higher here. So we’ll see what we have in store. My partner, Bill Baruch, he’ll be on CNBC today.
I’ll be on Bloomberg in a few hours. So if you get any questions, give me a call. 312858733. Remember, futures and options trading involves risk loss spin up suitable to all investors. Good luck and good trading.
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