Phil Streible with Blue Line Futures discusses Gold, Silver, Copper, Platinum, and other commodity topics.
AUTO-TRANSCRIBED
Good morning. It’s Friday, December 29th, about 6 a.m. Central Time. Overnight, the precious metals are weaker after yesterday’s year end profit taking. You have February gold down $7 at 2076. March silver down $0.38. 2398. March Copper down one at 390 and January. Platinum, which actually should be April platinum, down $4 at 1019. So make sure you trade in April on the platinum and you should be out of all your January contracts here today. Whether regardless of its grades or other markets. Now, look at it. Some things here precious metals, really, they’ve been unable to hold on to their gains over the last two sessions. The dollar index has bounced, but nothing real significant. That lower 100 level has been easily defended, as some people believe that the Fed will be higher for longer long term Treasury yields. They also rose with the ten year Treasury yield right now at 3.80%, up about three basis points. Other markets to watch platinum five and a half month high. That’s been very resilient. If you do track our seasonals and I did go over some of the risk with seasonals. Seasonal tendencies don’t always happen here and don’t let your guard down because of seasonals in place.But platinum prices reached a five and a half month high. And if you look at some of that seasonal tracking that we send out, platinum has historically, over the last 15 years, done very well into the end of November, December and into January. Now, palladium, on the other hand, reaching a two week low and continuing to sell off here today, down about one and a half percent, sitting at about 1120 $4, down 17. So palladium, we really see value below that thousand mark. Same thing with the platinum market below 900. On the silver market, I really believe it’s like a 20 to $23 pocket is where that support level gold is going to be. Much more elevated. I think it’s the 2040 down to about the 1950. Those are kind of your pocket value zones where if you haven’t been involved with it, you may want to consider something from your portfolio. But remember to look at the risks involved in your own particular risk parameters. Now, copper, it’s unable to extend its rally, but it’s done quite well. That’s another one where your value zone goes into that 375 down to 350 range. So down about one and a half here today. Many of these products are still significantly higher than what we feel is value. Now, if you look at the technicals here, the technicals on the silver market, not very constructive at the moment. We were unable to break out. There’s that critical level. You should just take out a pencil, print out a chart and draw a line across its 2493. I’ve wrote about that number for about three weeks on the Kitco website. However, their website is down here, so I veltliner and I’m podcasting on other financial news outlets. That is the level that I believe if we breached that level on a closing basis, we will attack the $26 level. That’s my opinion and I’m entitled to it. Now, on the downside, breaking below, it hovered at the 200 day, breaking below the 50. That’s not constructive at all. That’s a poor setup. And there’s that one long wick on the silver market that we might go down and fell. So at the $23 level here now on the gold market, I expect it to kind of more take a cycling approach with a series of, you know, those lower highs and those higher highs. So I think that we might come down, but realistically, the 58 cross over the 200 day moving average, your 50 day moving averages $23.25. That’s kind of your critical level here where your pockets support comes in looking at the crude oil market. Big hit job on it yesterday here. Kind of surprised with a lot of the military action going on in the Middle East. Who’s involved with this Red Sea conflict and how I ran is still able to operate sanction free within this oil deal when they’re the ones back in the militants. But that’s getting political. Don’t want to go that route where I do see value on crew all December of 2020 for crude oil below $70. I think that’s a really good area for people to really look at. The green markets are mixed. The dollars a bit lower, ten year Treasury yields are higher. All your equity markets kind of flat here on the session. Expect some kind of gyration there as well. Today’s going to be another one of those days like yesterday where not a lot going on and then all of a sudden, all at once, you get some volatility, you get some risk. Little suspect on the precious metals move Yesterday most of that sell off occurred after when the pit session when the volume session went close and really was working it, you know, 245 three in the afternoon I was at the desk at three 330 and Silver was making a new low. So who it is, whatever. But yeah, that’s all I got for you guys. Have a great New Year. Happy New Year here. I’m getting all new equipment for down here. Some kind of terror and everything dark and we watching that stuff, but kind of a little bit more loosely here today. So you got two questions. Give me a call. 312858733. Remember, futures options, trading involves risk galore, spin up suitable to all investors.
Good luck and good trading.
– Phillip Streible, Chief Market Strategist