Phil Streible with Blue Line Futures discusses Gold, Silver, Copper, Platinum, and other commodity topics.
AUTO-TRANSCRIBED
Good morning. It’s Wednesday, December 27, about 6:30 a.m. Central Time. Overnight, the precious metals are mixed after yesterday’s similar session. Your February gold up $10 in 2081. March silver down two at 2437. March Copper up two at 392 and January. Platinum down two at 1997. So kind of a flat session in all those other metals besides the gold market.
Now, looking at gold, it’s one of the more constructive looking metals tactically. And the way the chart pattern suggests is we could see this test of 2100 if we get this inflow like we normally do coming into the end of the year, beginning of the year sessions here, especially in that first week, it’s the flow is it’s the way people are looking at things and their predictions going out into 2024.
DMI Plus has been overdue of a minus and that’s been going on for about a month into that November is when we saw this kind of first breakout on up to that 2162. That was the contract high. Stochastic saw rising no, not quite into overbought territory yet, meaning that we’ve got some strength behind us and we really could get ourselves into the start of a new bull market.
The average range has been about $23 per session here, so you do get a bit of volatility in these markets. Now, something that I want to look back and reflect on, as I always do each year, generally in late December, around these times I come up with some kind of bold predictions going into the following year. I normally write an article on Kitco and it’s labeled.
It would be just such that 24 bold and outrageous predictions. Now, if you look at 2023 and the reason why I don’t have it up is that Kitco does have a cyber issue there. Their website has been down for about two weeks now and they are actually recreating a new website here. So but I May 2023, outrageous and bold predictions.
I said gold, 20 $500. Silver $100 an ounce. Platinum $2,005 copper. Now, those were just outrageous. That was more of a joke and things like that. But when you break down into the nuts and bolts of the reality of what I was coming up with in the the funny thing is, is that you really got to have nerves of steel if you put out these types of articles because of the fact that I wrote these things and then people immediately like literally crucified me on the Internet, it was hilarious.
So I said Silver could shoot up into the mid-thirties, which it never did. It never got going this year. And then I said that it would average and end the year at $28 and people said I was an idiot on that. And the reality is, is that Silver, it never breached $30 this year. So and the reason behind that was and people say manipulation bah bah bah bah bah bah bah bah.
I don’t care about that. But I want to look at numbers and figures and it was China. Their reopening was completely flat. If you look at their their stock market, it is at like a five year low right now. They are really cycling lower. If they can get some momentum going, you should see silver futures much more constructive.
So we’ve got to keep an eye on that going into 2024. That’s where I think Silver, I think, has a firm bottom in those low twenties. I see value in those areas. I see $24 as a bit of no man’s land, 2526 without any kind of increase in economic activity in China as a bit of an overbought area.
Now if we do get a few things going on here, if you do get now, this is where gold comes into play. My prediction on gold was that we would get over 2000 in different periods. We would probably average about 1950. So I would have to take the average of it and see where we’re at. Remember, we’re at 1850, about two months ago, we got up to 2150.
So we will look at where some of the averages that I can kind of and a scorecard. I think I was a little bit more accurate on that. If you look at the copper market, I did say about 375 380 is my average and I believe that that’s probably pretty accurate. So I said I also said I’m platinum, right around $1,000 would be the average price.
I think I was off on that because platinum was really a bit of a dog and I think it was a drag on the palladium market and again, blaming China. So a bit of a slowdown here. So we’ll see what happens here. Now, gold where gold gets really going is that the Federal Reserve, obviously they see something, they see a down in GDP, They see that things are a bit slowing down.
So they’ll cut 50 basis points instead of 25. That’s where the party gets going in gold. That’s where silver starts to take off. You get the China, you get that story behind it. 54% of silver is industrial demand. Then you’re going to see things really take off here. So copper could be front running that type of stimulus in China.
So we’re going have to wait and see on that. If you got any questions, I love to talk to you guys. I love to work with you guys here. Different strategies here where your your value zones are out here, where you think that, you know, prices are a bit overbought, bit oversold. So, you know, give me a call up and talk to you at 3128587303.
Remember, futures option trading does involve risk loss may not be suitable to investors. Good luck, good trading.
Phillip Streible, Chief Market Strategist