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Good morning. It’s Friday, December 1st, by 6 a.m. Central Time. Overnight, the precious metals are flat after yesterday’s mixed session. Have February gold and change 2057 March Silver down $0.09. 2557. March Copper up two at 387 and January. Platinum down three at 933. It’s one of the things we’ll want to keep an eye on here. The gold silver ratio right at about 80 to 1.
Historically, it’s been much lower. However, recently over the past few months, it’s kind of traded in this range here. This is kind of the lower boundary. So if you do see a correction in silver, it might be a little bit more violent on the gold market here as that gold silver ratio could cycle back up to 83, four or five somewhere around there.
But we’ll keep an eye on that. Now, if you look at some things going on here, U.S. stocks, they posted their best monthly close in over a year and a half. Declining bond yields in signs that the Fed is managing to tame inflation. So if you look at the March 20th Fed meeting, there’s a 46% chance that there’s an expectation that they will cut 25 basis points.
Now, some things we also want to watch here. Jerome Powell, he speaks later today at Spelman College. He’s probably going to come out and say it’s too early to declare victory. They’re going to be hesitant on they do anything. They haven’t discussed any kind of cuts on interest rates whatsoever. So he might have a little bit of a hawkish tone here.
We’ll see what happens. We do have construction spending coming out and also ISM manufacturer ing PMI. Much of the economic data has been weaker recently, so we’ll look for some revised down on the numbers. Now, if you look at gold and silver, the current trends are still bullish. Silver looks a little bit extended as I outlined on that gold silver ratio in comparison to gold, where gold is consolidated over the last three days.
Silver made a new contract high, at least recent contract high, and we’re a bit lower on the day, down about $0.08. Now, if you look at that performance for November, it’s natural that people are going to take some of those positions off. People are saying, hey, we’ve got the best close monthly close on U.S. equities. The Dow posting one of its high.
It’s close. Why don’t we take some of that off? We’ll wait until next year. We’ve had an incredible recovery since that October 7th low. Now, the current levels that we’re watching on the gold market, your key level support, the 200 day moving average right around 2003 on up to the trend reversal point, which is 2012. So expect pockets support there below.
That’s going to be the 50 day moving average in 1973 and a half, looking at the technicals. So Catholics are on overbought territory. However, that just indicates that we are in entering into a bull market. If you look at DMI plus and minus, they’re wide, but they’re not excessively wide in the market has crossed over to positive territory.
Silver has done the same thing that critical levels for. I really think that silver 25 bucks is going to be kind of a line in the sand below. That’s 2417. That’s your 200 day moving average. The outside markets are mixed. U.S. equities under a little bit of pressure, however, the Dow is up 48. Dollar index down 14. We’ll probably see some volatility when Powell starts speaking.
And crude oil futures really volatile session yesterday with OPEC members unable to really come to a consensus on an entire block agreement on what they were going to cut in each individual country. There’s 23 nations that comprise pack that each one had reported whatever their own individual cuts are. Some things that we’re watching here. Copper up 320. I really believe the resistance point on copper right around 392.
Many of you are currently involved with that market. So we’ll look at perhaps reducing some positions on an extension upwards over there. And then also the agricultural markets under quite a bit of pressure being down $0.15, down about 1%. Same thing with the wheat. We had a great run. Beans are starting to correct again. So we’ll keep an eye on that.
Getting questions. Give me a call. Post an article on Kitco here today. You guys all have a great weekend. Try and come up with something good here. It’s a little bit lofty on prices to be really getting aggressive at these levels, but we welcome any correction to start establishing things. Getting questions. Give me a call. Three one, 2858733.
Remember, futures option trading does involve risk loss may not be suitable to investors. Good luck and good trading.
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