***TRANSCRIPT***
Good morning. It’s Monday, November six, but 6 a.m. Central Time overnight. The precious metals are mixed after Friday’s stronger session. You have gold on $5.19 94. Silver up $0.05 2334. Copper’s up three at 3.71 and platinum down two at 942. So a few things that we’re watching here. One, we might have seen peak rates, especially after that dovish FOMC meeting.
And you have the dollar index. It’s the weakest in over a month. So if you look at that chart in the dollar. Breaking down pretty hard. You got to go back to about September 20th to see where it was at at this level and what was going on at that point. So looking at the latest commitment of traders report, we did see an exodus on silver.
They took down about eight on 842 contracts. There’s only 31,942. That’s a noncommercial as a non reportable and alongside gold did have a big bump up about 20,000 contracts to 190,000. But I really believe that without that lack of follow through to the upside, you’re going to see a lot of those traders, they come out of that market.
They’re going to other things like the Nasdaq, which is peaking together again. It’s past its six straight day here up. So look at the breaking down the technicals and a couple of things I’m watching this week. It’s pretty quiet day, quiet week. We’ve got Powell. He speaks on Wednesday and Thursday, see if he does anything there. But otherwise, on the economic front, there’s just not a lot out there.
You got consumer credit, U.S. trade, balance, wholesale trade data, but just nothing really. The crop production report that’ll probably be the highlight of the week here for me personally as a commodity guy. So looking at the current trends here, gold is bullish, but you got a few things you got to watch here. One, your key level support on gold to today move an average 1983, your 50 day moving average below that.
It’s going to be 1950 1944 and then the trend reversal point in 1936. So your resistance point, it’s clear it’s that last Friday, whatever is high at 2020 can’t get over that party’s over for gold. It’s probably gonna go a lot lower. You look at silver neutral right now on the trend. Silver is looking a little bit better, especially given the strength in the copper market and a slight upside breakout.
If you do get some industrial production picking up things like that, you’ll see silver start to track copper and things higher. Remember, 54% of Silver’s demand is industrial demand. Do not forget that. So you look at the current trend again, neutral, your first resistance point, it’s going to be your 200 day moving average 2385. Really we got a close over 2340 to start sparked some interest in the trend following funds that’ll flip it to a bullish trend.
They’ll start to get long on any kind of any kind of break down. They’ll buy those dips. Your key level support here, the 50 day moving average 2307 And then again those two trend reversal points, 2340 on the upside, 20 to 36 On their downside, if you look at the outside markets are stronger. Six straight gain on U.S. equities.
Unbelievable bull Given the circumstances that are going on right now, you have crude oil up a dollar. It’s 8168. The dollar index down 12 at 104 73. And then your ten year treasury yields are up three at 458. Remember, they were trading between 481 and 5% forever. You had these massive breakdowns in here. So we’ll see how it reacts.
Percent and ten year treasuries that could really weigh in the markets, especially if they get any kind of hint that Powell is going to raise rates again on the December meeting. If you got any questions, give me a call. 312858733. Remember, futures and options trading does involve risk. Loss may not be simple to investors. Good luck, Good trading.
***END OF TRANSCRIPT***