Phillip Streible, Chief Market StrategistAUTO TRANSCRIBED
Good morning. It’s Thursday, November 16th, about 6 a.m. Central Time. Overnight, the precious metals are higher after yesterday’s mixed session. You have December gold up $4.19 68. Some silver up $0.22. 23.76. Summer Copper unchanged at 3.72 and January. Platinum up three at 905. So looking at the precious metals, it’s slightly disappointed given the expectations that the interest rate hikes cycle is over.
And with data indicating that inflation is moderating, we’ll continue to want to monitor the dollar index, Treasury yields and also the 200 day moving average. If you look at the technicals and the gold and silver market, they’re both trapped between this 50 and 200 day moving average. So you get into something like gold. The 200 day moving average is going to be your main resist and point at 1981.
Above that will be 2020 20 below it’ll be your 50 day moving average and it’s more of a pocket support from 1950. The 50 day moving average is 1944. The trend reversal point is 1939 50. So you’ve got a whole bunch of support levels on the low side and that’s where we start selling off. Back when we were really liquidating a lot of the war premium out.
People that were expecting this conflict to expand, they had not seen that. So they jumped out of that market, chased other asset classes like the Nasdaq, like the S&P 500 and Bitcoin. Now, if you look at Bitcoin here today, it down $425. You’ve also got U.S. equities under some pressure. The dollar index coming up. Might get another opportunity to look at the gold market near those support levels and any kind of pullback or surprise hawkish narrative coming out from a Fed member.
Now, if you look at the silver market, surprisingly, it’s been much stronger here just recently. The gold silver ratio was up at 87, dropped down to about 83. So silver is really outperforming and it was a leadership by the copper market and also platinum last week that really got that market going. So your first level of resistance on the silver market, 200 day moving average, about 2381 and then your key levels of supporter $23.24 85 is the 50 day moving average and the trend reversal point way down there at 20 to 15.
So we’re really looking a bit more positively structured on the charts for both the gold and silver market. So looking at the outside markets here, you do have oil under a little bit of pressure here. Something I noticed on that is that the front month on oil, December oil had dropped below the back bonds, things like January. In March, we had a dip below there.
So 76, 23 on December and 76, 42 on the march. So we haven’t seen that type of contango here in quite a while. Look at it. The Greens are all under a bit of pressure. Dollar index up 8104 35 U.S. Treasury yields a ten year yield down four basis points at 4.49. We’ll see. A 4.5 tends to be the new anchor point on there where it was about 4.8 about a week and a half ago.
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