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Good morning. It’s Tuesday, November 7th, about 6 a.m. Central Time. Overnight, the precious metals are under significant pressure after yesterday’s warning signs. You have December gold down $17, 1971, summer silver down $0.63 to 61. Summer Copper down five. At 3.66 and January. Platinum down 15 at 902. So a number of things that really came out just in the last 24 hours that are putting pressure on the markets.
One from E! From the war effort. We although there’s been no cease fire, the conflict doesn’t seem to be expanding. So you’re seeing some of the premium come out of like the gold market where people are looking for that safe haven trade. So some of that money’s been coming out. Also overnight, you had some weaker Chinese trade balance data that also put some more pressure on it.
The Royal Bank of Australia, they were in a pause situation. They came out the high trade’s 25 basis points and Fed’s Kashkari said it was too soon to declare victory over inflation. So it’s just a number of different things. The dollar index also bouncing. It’s up about a half a percent off of those seven week lows. So really just a lot of headwinds out there.
Now, fortunately, ten year Treasury yields and two year Treasury yields aren’t really rallying at all. They’re still negative right now. The ten year down five basis points at 460, the two year down one and a half at 46. But, you know, it just looks like you really had some warning signs on these precious metals. There was no follow through.
It was unable to break out over those Friday highs where it hit that 2020 level, despite it seemed like the Middle East was coming unhinged. We saw a breakdown in prices. And then finally, this correction lower. So although the current trend on gold is bullish, you know, you look at your new resistance points, well, now it’s the 200 day moving average, which was old support.
Now new resistance, 1983 psychological level above that 2020 20 above that your support levels, it’s going to be this pocket support 1950 down in 1944. That’s your 50 day moving average in your trend reversal points 1936. Remember, gold was in a bad situation before this conflict started and it started with a short covering rally that was explosive, went up $150.
And now if there is not any kind of expansion of this this war, you’re going to see people cash in and people are going to run for the doors. So you look at the silver market, it is neutral. It never captured that bearish trend, in my opinion. Your resistance point 50 day moving average 2303 200 day moving average 2385 Your support level is going to be 2250 your first one which is only about $0.10 away as of this recording, and then your trend reversal points 20 to 35.
So if we break on a closing basis from there, you’re going to see people run for the doors as well. So overnight, I think because of the trade balance data, you know, you got crude oil down over a dollar, you got some of the grain markets all under pressure. The dollar index again up 50 and again. Your yields, they’re not positive, but they are kind of hanging in there and U.S. equities are under pressure.
So we might have seen an intermediate top on U.S. equities at the moment. So we’ll see what happens here. You get a question. I’m jumping on the Schwab Network in about an hour and 15 minutes. So at about 7:05 a.m. Central Time, I’ll be on the Schwab Network. But if you guys have any questions, give me a call.
Remember, futures and options trading does involve risk. Loss may not be suitable to investors. Good luck and good trading.
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