Phil Streible with Blue Line Futures discusses Gold, Silver, Copper, Platinum, and other commodity topics.
Phillip Streible, Chief Market Strategist
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Good morning. It’s Tuesday, December 12, about 6 a.m. Central Time. Overnight, the precious metals are firmer after yesterday’s sell off. You have fab gold up $9 and 22 March. Silver up $0.19. 23, 25. March copper up one at 379 and January. Platinum up 12 at 927. So gold, silver, copper and platinum. All trade below their respective 200 day moving averages.
The dollar index recently is held steady and Treasury yields have firmed up. The US session today will start off with weekly same store sales, followed by the November CPI data, which is forecasting a downtick from October. 3.2% rate. Core CPI is expected to hold steady at 4% year over year. If we do see a softer CPI print, we could see the short covering rally extend throughout the session.
The Federal Reserve will meet tomorrow and Powell could push back on any expectations for that first interest rate cut. So where do we see a value on precious metals right now? We are eyeing the February and April call spreads for gold and then also on March silver. We are looking at some critical level support on gold at 1950 and then also on silver, anywhere below the $23 range.
So looking at the technicals, gold has triggered a bearish trend. However, I call this more of a return to the scene of the crime. If you look from about October 16th, which is when we got that breakout, it was the October 15th 16 breakout over that $22 level. We kind of consolidated for about a month, right between about 24 on the upside, 23 on the downside.
So we’re kind of coming to the bottom of that channel right now. We’ve broken out to the upside and now we’ve returned to it. Call it a return to the scene of the crime. Now, looking at gold. Gold is in a neutral trend. It’s holding about the 50 and the 200 day moving average. 1990 is going to be your 50 day moving average 2007 is going to be the 200 day moving average.
So we’ve got a lot of action coming out over the next two days. So be prepared for that. If you’re heavily overextended, use any kind of rally to lighten up. Use those critical levels of supports as your risk management strategy. Looking at the overnight session, the dollar index down about 34 ticks. January crude kind of mixed here, trading within about a dollar range, 72 on the upside, $70 on the downside.
Ten year Treasury yields down five ticks at 14. And also on your indices, we’ve all rolled over to the march, so we’ll have to readjust to those No new price bands. If you got any questions on futures options trading, give me a call. 3128587303. And remember, futures and options trading does involve risk. Loss may not be suitable to investors.
Good luck and good trading.
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Phillip Streible, Chief Market Strategist