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 Wednesday, December 13th, about 6 a.m. Central Time. Overnight, the precious metals are mixed after yesterday’s flat session. You have February gold up $4.19 97. March silver unchanged at $23. March copper down one at 3.77 and January. Platinum down eight at 922. Platforms had a couple of good days in a row here, really pushing back up.
It’s holding that $900 quite well on the downside and it tends to be resilient and pushing back up. Looking at some of the overnight headlines here in the precious metals, the U.K. GDP, it contracted 0.3%. Why that’s important to precious metals is because if you look at the currencies across the board, the British pound is down 0.3%, really kind of leading the charge.
It’s holding that $900 quite well on the downside and it tends to be resilient and pushing back up. Looking at some of the overnight headlines here in the precious metals, the U.K. GDP, it contracted 0.3%. Why that’s important to precious metals is because if you look at the currencies across the board, the British pound is down 0.3%, really kind of leading the charge.
And we will see a bit of a push back from Jerome Powell on any kind of discussion as far as when they’re going to cut rates. So it’s all speculation. It’s all pricing in the Fed fund futures when those rate cuts are going to happen. Now, with the U.K. GDP slipping, they’re saying that their first rate cut could be in May.
If you look at what we’re looking at, it’s most likely March for us. But Powell is going to come out and say it’s way too early to tell. So that said, meetings is going to take place at 1 p.m. Central Time. 130 will see Jerome Powell have his press conference, Will he’ll they’ll release the dot plots and where they believe the economy’s going.
And you can see that there’s been a pretty good downtick here. Labor market tends to be a little bit more resilient right now, and that’s the reason why they’re skeptical on doing anything as far as cutting rates or even discussing that. So if you look at some of the critical levels of support on both that gold and the silver market we pull up here, Silver, you could see that silver has been really slacking.
It’s it’s broken below the 200 day moving average, both below the 50 day moving average. It triggered bearish and as far as the way the trend is going now, you got stochastic stepping into oversold territory. DMI minus is crossing over plus and then we’ve broken below all these key levels of support. We did push below $23. I do see value anywhere in the 20 twos down to about 20 bucks here on silver.
I think silver is going to be one of your better performing commodities next year, but into the tail half of the year is when it really gets explosive. Now, every time that I’ve tried to time this thing right, like waiting for that last correction on the precious metals to get involved with, I tend to miss it. So that’s just the way it is.
So if you’re going to look at this, you might want to pre-position in there. So if you get any kind of serious correction below $22, you go into the 22 down at 21 $20. I think you got to hold on the long duration. Looking at, you know, July, September, December of 2024 and the silver market, same thing with crude oil.
I think the back half of the year is when you see, you know, the contraction in the GDP start to come down and you start to see those expectations for rate cuts start to accelerate higher. And that’s where we see growth in the economy. Again. So looking at the gold market, you’ll see that hold in a bit better than the silver market.
It’s kind of since it made that 2152 peak, then it’s pulled back. Now we’re kind of fluttering between the 200 and the 50 day moving average or more of a neutral trend at the moment here. We’re holding that support from that last sell off, which was about the 50 day moving average came down to about 1965 and the 200 day moving averages kind of slowly sloping up as well as the 50 day moving average.
So you got any questions? Futures options, trading, It’s going to be a really busy day. A lot of volatility, I think, in the market here, but some good volatility. So we welcome any prices lower on precious metals right now. And then on crude oil, we’re looking at long term value. We believe that OPEC will take some kind of stance.
They will maintain their cuts. The economy, once the Fed starts to cut, we’ll start to pick up again. And and so that’s why we like favor the really the back half of the year. If you have any questions on futures options, trade, give me a call. 312858733. Remember, futures option trading models Risk loss may not be suitable to all investors.
Good luck. Good trading.
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Phillip Streible, Chief Market Strategist