Good morning. It’s Friday, November 3rd, 6 a.m. Central Time. Overnight, the precious metals are mixed after yesterday’s consolidation. You have gold up $1. 1994. Silver down $0.14. 20 to 70. Copper’s down one at 3.66. Now, overnight, copper did hit 3.75. Recent contract high 3.71. Some economic data piece overseas. Most likely in China had come out. We’re going to have to dig up, find out what that was, and then examine that number.
Platinum up six at 936. So the U.S. payroll data will be closely watched after the Fed’s dovish stance this week on interest rates. Analysts are expecting 180,000 jobs created and the unemployment rate to remain at 3.8%. I believe that this will be one of the most closely watched unemployment rates and also headline number that we’ve seen since the start of the pandemic when we were recreating jobs.
Now, something else that’s important is it is Friday. In the last four Fridays since October six, we saw a short covering rally in gold. That was more technical in nature. We had the October seven event happen in the Middle East. October 9th, gold was up and gapped up, up $28. So then you start looking at every Friday after that, like October 13th, up $64.
October 20th, that was a short covering squeeze where we got up to that 2020 contract high. That remains your resistance point in the gold market. Got to close over 2020. Then you look at the October 27th, that was also another squeeze where we’re up $21. So we’ll see what happens here today. We’ll see if it has that flight to safety, that risk off vibe in in other asset classes and that flight to safety in the gold market with some of the developments that are coming overseas.
Now, I know that Secretary of State Anthony Blinken is over there. He is trying to negotiate some kind of temporary cease fire to provide humanitarian aid. Also, they are releasing people in the southern corridor into Egypt. So in they have Gaza City surrounded as far as the Israeli troops. So they’re meeting some of their objectives there. But we’ll see if it still has that same kind of unhinged momentum coming into the close here.
Now, if you do look at the technicals here on the gold market, it is bullish. Your first level support, 1983 200 day moving average. Below that pocket support psychological number 1950 down to 1944. That’s the 50 day moving average in the 1937 is your trend reversal point to reorder reiterate 2020 resistance point. Got to get above there. Now look at the current trend on silver.
I would call that disappointing more than anything. The support level on silver is actually going to be a much lower. It’s going to be like 20 to 50 on down to 2022, 31 below 20 to 31. I think it’s party over. We made a head and shoulders pattern. We’re going back down to those recent lows. Just doesn’t have that same, same, you know, firepower as far as that safe haven trade that we’ve seen in the past.
Also with copper futures having this reversal. You’re seeing some pressure on the silver market. Your resistance point on silver 2309, that’s the 50 day moving average. That’s the area that we struggled here yesterday to get and close above and then above that, it’s going to be the 200 day moving average, 2386. If you look, we kind of came up to it kind of came up to it and then we’ve been down.
So look at it. The outside markets are mixed here. You’ve got equities. They’re holding up a lot better than I thought were the Apple earnings and a disappointment on the sales to China. Crude oil is up about $0.23 at 80 to $70, down 17. And something else to watch on the precious metals. The dollar was down like 100 points yesterday.
Treasury yields the ten year broke major support, 4.81. It was in this range forever breaks that goes on a 4.6 or yeah 4.65. Why isn’t gold making new contract highs? So that tells you that there’s a problem there with that contract at the moment. And the belief that they’re there. Now, I think that a lot of the people chase gold going up and then also they rotated into the Nasdaq when it had three or four or five days up in the Dow where it exploded higher.
So that’s my $0.02 here. If you’ve got any questions, give me a call. I’ll be posting an article on Kitco. Give me a call. 31285873. All three. Remember, futures option trading bulls, risk loss up suitable to investors. Good luck and good trading.