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Good morning. It’s Tuesday, November 28, about 6 a.m. Central Time. Overnight, the precious metals are higher after yesterday’s upward extension of December. Gold up $3 at 2016. Summer silver up $0.06 2474. March Copper is unchanged at 380 and January, platforms up $10 at 934. So three things that I’m watching the precious metals. One is the dollar index. If you look at the latest CFTC commitment of Traders report, it shows that the leveraged net longs in the dollar have reached their highest level since February of 2022, while Treasury yields have corrected 65 basis points from the October highs.
So it asks you who’s going to be right on this and has the fight against inflation been won? If you look at the Fed fund, futures going out into 2020, for the end of it, you’ll see that they’re expected to cut 95 basis points. Now, looking at the precious metals, that’s the reason for the rally just recently here is that modest breakdown that we’ve seen in the dollar index over the past week.
And also that correction in ten year Treasury yields. Now, if you look at how healthy this bull market is in checking off the technicals, the Mac D on the gold market is rising from oversold territory. The DMI plus is firmly above DMI minus the stochastic R over 80, which generally indicates an overbought condition. And it makes sense from those November lows on up to where we closed yesterday is about a $75 rally on the gold market.
We do believe that this is a healthy bull market ahead of us. Now, some things that we’re watching here today is the consumer confidence numbers which come out and are expected to further show a deterioration in which we’ve seen in much of the economic data that’s come out recently. And I think that’s why those expectations are being pulled forward for those first interest rate cuts out of the Fed.
We’ve already saw globally, most central banks in more industrialized country are continuing to hold steady on their interest rate decisions and they aren’t further escalating those Treasury yields. Now, if you look at the technicals and the precious metals, both gold and silver are in bullish trends. What I’m mainly focused on is low support levels in places to potentially add.
If you look at that first level support on December gold, it’s going to be right around 2000. Your second level support will be the 200 day moving average in 1982 40. The third level is going to be pocket support from 1963 down to about 1944, which is the 50 day moving average. If you look at silver, again, that’s bullish.
Your first level support this is on the December contracts going to be right around $24. We’ve seen an uptick in volatility, a string together, a bull tied 50 cent session upward extension. So that volatility does pick up quite a bit. Your second level support is going to be the 200 day moving average at 2380. The outside markets are mixed.
U.S. equities under just a bit of pressure here, not too much. The crude oil market, you do have 23, 23 countries that are fighting for their stance in opaque and opaque plus on the initiatives on whether they should extend those cuts. You’ve got crude oil up about $0.74. Expect volatility in that market. Small, short covering rally going on in the agricultural markets.
Bitcoin recovering about one and a half percent. The dollar index just about unchanged here at 103 14. So we’ll want to keep an eye on all these different markets here. Getting questions futures option trading. Give me a call 312858733. Remember, futures option trading does involve risk loss may not be suitable to investors. Good luck and good trading.
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