AUTO TRANSCRIBED
Good morning. It’s Wednesday, November 22nd, about 6 a.m. Central Time. Overnight, the precious metals are higher after yesterday’s rally. Have December gold up $2 at 2003. Some silver up $0.05 2391. March copper down to 63. 82. And January. Platinum unchanged at 946. So a quick look at the month to date performance Silver up 4%. Copper up 3%. Two different labor strikes that are going on representing about 3% of the global mining output has really put the pressure and the movement higher on the copper market.
We see long term value in the copper, anywhere between that 3.75 level down to about 355. Looking at the March copper and beyond, we believe that mining supply are going to continue to be strained. We believe that labor disputes will continue to rattle through different countries and different mines and that the pick up in demand from a softer landing will continue to add to upside pressure on the copper market.
Now, looking at gold and platinum, they’re both up by half a percent. The minutes from the last policy meeting indicated that members are looking to proceed cautiously. This the first time that the Fed has done this. And they also discuss the impact of higher rates on businesses and households. So they’re acknowledging that the damage that they’ve done is taking its toll on the consumer.
Remember, the Fed works in a rearview mirror, so they’ve got to see the economic data come out, present itself and show weaker data in order for them to take any kind of policy stance. Now, if you go across the pond to the U.K., they are leaning towards tax cuts on small businesses and households because of the fact they’ve also acknowledged that as well.
And it’s the first time they’ve taken this kind of dovish pause. So we’ll see what happens there. Looking at some things that we’re watching today, we’ve got a slew of economic data, everything from initial claims, durable goods and consumer sentiment, which could also lead the way and pave the way to what the Fed is going to be doing going forward.
Now, looking at the current trend on gold, it is bullish and we finally push back up. And the first time that we’ve really closed over the 2000 level, surprisingly, with a cease fire over in the Middle East. That is set for four days right now as they release some hostages and then they’ve got a deal going forward tentatively on every ten hostages.
Additionally that the release beyond the 50, they’ll also do a cease fire for one more day. Your current level support on the gold market obviously close in support said 2000 close and resistance at 2020. A close over 2020 would be fantastic and could pave the way to much higher levels on the gold market. The only thing I am cautious about is that we are in holiday type volume and many people are traveling right now.
Not necessarily trading. So that volume really dips off here. Your key level support, the 200 day moving average in 1982 and then below, that’s pocket support from 1955 down to about 1944, which is the 50 day moving average. Looking at the silver market, we are consolidating nicely after that extension upwards. If dip below 22, we’ve shot up to about 24 now we’re consolidating right at the 200 day moving average at 2379.
We’ve got to get that breakout over 2425 in order to really extend prices up to the 25 level. Your key level support close in support is going to be about 2350 below. That’s 2289, which is the 50 day moving average. And your trend reversal point is that 20 to 45. You got any questions on futures or options trading?
Give me a call and I do acknowledge that Blue Line Capital is written backwards because I’m using a mobile phone to record this. But remember, futures and options trading does involve risk. Loss may not be suitable to all investors. Good luck, Good trading. I’ll be on the Schwab network here shortly.