Good morning. It’s Tuesday, November 21st, about 5 a.m. Central Time. All right. The precious metals are higher after yesterday’s sell off of December. Gold up $11, 1992. Summer silver up $0.05, 2366. Some are copper and change at 381 and January, platinum up four at 932. So we’re back near Friday’s highs in the December gold market and it’s kind of trapped in this $30 range.
You get down to about 1967 on the downside, 1997 on the upside. And Silver also remains in a dollar range by 2329. On the downside, 24, 22 on the upside. Silver is very disappointing given the robust strength that we’re seeing in the copper market. Typically, copper drags the silver market forward. Also the gold market, gold pushing back up here.
Silver is kind of dragging. So I have to wait and see what silver is trying to do. It’s slightly disappointing still in the bull trend out here. We’re looking and we do see value if it does drop below the $22 mark, but that’s quite a ways away. Now, some things that we’re watching here today, we do have October existing home sales.
They’re expected to have a downtick and we’ll see if those higher interest rates have an impact on it, followed by the FOMC minutes later in the afternoon. That’ll give you some insight as far as where the Fed is thinking, where their heads at when it comes to this next interest rate hike. And then after the bell, we’re going to have the video earnings, which that’s been a major driver in a major focus of a lot of these funds and flow of funds.
So if you get a pullback or an explosive rally in the in NVIDIA and in the tech sector, it might spark a bit of liquidation in the gold market with people chasing that asset class. Remember, that’s the way people operate here. Think of the normal public. They don’t have any kind of, you know, passion for any specific market.
They just got a hop around, bounce around. If it’s Bitcoin, if it’s crude oil, if it’s the Nasdaq, whatever they’re doing, that’s what they’re chasing. I think on a long enough timeline, the one up chasing silver, once it breaks out of this 13 year wedge, if you pull up a weekly chart, you connect some of those COVID lows, you connect the highs from 2011 when it was at $50.
It’s in this wedge. If it breaks out from there could be quite robust. So looking at the resistance points here, your support on gold, your major support is the 1949 20 down in 1944. If we break through there on a closing basis, it will flip to a neutral trend. It will establish two new points for a break down point for a sell off and a breakout point on the upside for a further rally.
Most likely, that rally point will default to about the 200 day moving average in 1982. So that’s your first close in here. Support not really all that that can create because we’ve traded in and out of it several times. The 200 day moving average is act more as better resistance for the silver market at 2378 right now that market had one close over.
It struggled the next day and has been coming down. So your key level support on silver is really $23 down to the 50 day moving average, 2287. It’s had that dollar range. So there’s no real reason why it couldn’t travel down that low, but it would be very disappointing and discouraging on the charts. Looking at crude oil futures, taking a bit of a breather after about a $6 rally off those lows.
We saw some reports come out from other independent research companies stating that they really see some value in crude oil. Their focus that they believe Saudi Arabia will continue those cuts, in extending those cuts, that U.S. supply growth is starting to stall out and they don’t see the recession as deep as what most analysts anticipate, meaning the is going to continue to travel and things like that.
So crude oil down $0.45. The grain markets are all slightly higher dollar index. Look at that chart. Really big sell off here. But I’m a little discouraged on the precious metals. Gold really should have traveled through 2000 to 2020 and really be pushing higher. I can’t do it with that lower dollar. I’m not sure what it’s going to take.
Treasury yields a bit lower. The two year yield slightly lower, the ten year yield down about one and a half basis points at 440. So a lot of stuff out there, you know, keep your eye on the swivel. The the thing about when you come into this holiday type volume is news events can really send these markets in wild directions like two years ago when we had the omni crown, whatever COVID in crude oil futures sold off like $14 in two days.
So, you know, you keep an eye on these things here. I’m not seeing a COVID type event, but I’m saying that the video, the FOMC minutes, we do have a bit more economic data coming out here tomorrow, Thursday will be a holiday. They’ll have some trading in the evening hours, and then you’ll have reduced sessions here, perhaps Wednesday and Friday will email out that the trades casual.
So get any questions, give me a call. 3128587303. Remember, futures option trading. Wall Street’s glass may not be suitable to all investors. Good luck, Good trading.