Good morning. It’s Tuesday, October 31st, about 6 a.m. Central Time. Overnight, the precious metals are mixed after yesterday’s rally. You have December gold up $2. 2008. Some are silver on change 2339. Silver copper unchanged at 366 in January, Platinum up six at 946. So we saw a technical reversal in copper, platinum and silver yesterday. While gold was unable to break out over Friday’s highs.
Friday’s highs will remain as your key resistance point. We’ll need to see a closing above that in order to attract more trend following traders into that market that are looking for more upside momentum. Now, eurozone inflation fell more than expected at 2.9% overnight. And also the Bank of Japan, the yen fell the most in two months as the big hit.
Japan only made minor adjustments to policy settings. We saw Chinese factory PMI coming out at 49.5. They were expecting 50.2. It shows that their economy is still quite fragile and will need more additional support. So we want to keep an eye on copper, silver and other markets to react to Chinese stimulus. Looking at some things to watch. Nothing really in today’s trading session other than the U.S. equities.
If they could sustain that rally from yesterday, short covering rally. But really we’re looking forward to Wednesday’s Fed meeting and also ADP Now looking at the current trend for the gold market, it is bullish and you do have your first real support, 1984. That’s a 200 day moving average. Your deep supports 1946 and then your trend reversal points 1927.
Friday’s highs up in 20 1970, that’s going to be your key level of resistance. So all eyes on that. Looking at the silver market, it is still in a neutral trend, but just barely. So your first supports can be 2319 market right now as of this recording 2340 below that you’re going to see a key level here at $23 and just above that your first level of resistance going to be 2340 where we’re trading right now, venture trend reversal point that will trigger things to a bullish trend, attract some lows, momentum traders, those technical breakout traders.
And then finally, your 200 day moving average up at 2389 is going to be your key level of resistance. Looking at the outside markets are mixed. You’ve got crude oil up $0.69 from crude oil yesterday, down $3. So that’s a big reversal back upside. It’s been playing in a range for about the last four or five days. You look at the December dollar index down 15 1.5 77.
We’ll keep an eye on that. That chart has been slowly sliding lower. I think that’s what providing a lot of your support to the gold market. And then finally, your treasury yields. You’ve got 4.82 down about five basis points on a ten year note. So things are a bit easing off. I think it was the eurozone data that came out weaker as one is got some of these inflation expectations for the U.S. kind of ratcheting down a bit.
So that’s what I think is giving a bit of a risk on trade and a little bit of a broad based rally and some of these other commodities. If you have any questions, give me a call. 312858733. Remember, futures option trading of all sorts, clean ups suitable to investors, good luck and good trading.