Phil Streible with Blue Line Futures discusses Gold, Silver, Copper, Platinum, and other commodity topics.
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Good morning. It’s Thursday, December 7th, about 6 a.m. Central Time. Overnight, the precious metals are higher after yesterday’s mixed session. You have February gold up $2 at 2050. March silver of $0.01 2424. March copper up three at 3.76 and January. Platinum up four at 898. One thing to note is that the gold silver ratio is back at about 84 and a half.
Last week it got as low as 80. So the overshoot on silver to the upside has also corrected more than expected to the downside. So the markets are quiet this morning after a three day slide in silver, copper and platinum and oil is pushed down to levels not seen since last June. So overnight, the leaders in Japan said that they may be close to ending negative interest rates.
We’ve got a big move in the yen up about one and a half percent. Typically, we would see a spillover effect on gold and silver. So we’re a bit disappointed on that. Other news here, we’ve seen two lower than expected jobs reports this week and job openings are at the lowest level since March 2021. Expectations for an interest rate cut in March are up at 56%.
A couple of things that we’re watching here today. We do have the final October reading for wholesale inventories. We have weekly jobless claims and also consumer credit data. Looking at the charts here, silver, silver, one thing to note is pushed back down to the 200 day moving average, sitting right around 2420. Your trend reversal point is about 2374.
That would take it back to a neutral trend and then another critical level support below that is the 50 day moving average at 2347. We are seeing the DMI plus and minus start to converge. That’s not necessarily a great sign here for the bulls. Stochastic sort are pushing down into oversold territory. They’re just approaching that level right now.
Now if you look at the gold market, it looks a bit more constructive at the moment. We’ve come we’ve hovered back above the trend reversal point, which is 2018. Your critical level supports a 200 day moving average at 2005 and then your 50 day moving average is 1982. So the gold market looks much firmer than the silver market as far as DMI plus and minus being far apart from each other.
So Kazakhs have corrected, but they are starting to level out. If you look at the outside markets here, it was a bloodbath in the crude oil market yesterday. You’ve got front month crude oil sitting at 69, 69 right now, up $0.31. And then you start looking at other markets here, like the natural gas down $0.06 sitting at 250.
So other markets here to look at the dollar index down 21 and ten year Treasury yields up three basis points. Getting questions on futures options trading. Give me a call 31285873. All three. Remember, futures option trading involves riskless may not be suitable to all investors. Good luck and good trading.
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Phillip Streible, Chief Market Strategist