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Gold Prices Rise Slightly Overnight

GOLD / SILVER

Gold prices rose slightly overnight, even as the dollar index managed to rebound off of its 200-day moving average. This support level for the dollar gives the gold bears something to get excited about. Gold is still digesting yesterday’s FOMC Minutes as it shows the Fed is weary of worsening financial conditions. But with the bond yields failing to fall further overnight, we might expect gold bulls to take a break. Today’s focus will be on this morning’s Durable Goods release, where the market is expecting a rather large drop from last month. A surprise to the upside could send yields higher and pressure gold prices. Inflation expectations will also be widely watched. After these reports, the market will likely see reduced volumes due to the Thanksgiving holiday. Silver prices were also up overnight as it seems to be getting comfortable above its 200-day moving average on the December contract.

gold bar close up

COPPER

Copper prices were down overnight after being rejected by their 200-day moving average resistance. After Nvidia reported that it expects a steep drop in fourth quarter sales to China, analysts are worried about China’s auto sector falling behind. This comes after Chinese car exports have surged 44% year on year. Attention will now shift to this morning’s Durable Goods orders. With the market expecting a -3.2% drop in orders, there is potentially room for a surprise to the upside. The rebound in the dollar has put pressure on copper as US bond yields rise slightly following yesterday’s FOMC Minutes. LME copper stocks saw a minimal build this morning, but they remain well below their mid-October highs. With the dollar oversold and bouncing off of its 200-day moving average, it could rebound further. This has the potential to give copper bears something to celebrate today. With the Thanksgiving holidays fast approaching, trading volumes are expected to be muted.

 

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