Hello there!
We’re coming off a solid week in the markets, with gains across most major indexes. As we head into a short Thanksgiving week in the U.S., here’s what I’m watching closely.
A Quick Look at the Week Ahead
Next week will be light, with just a few key economic reports to keep an eye on:
- New Home Sales (Tuesday)
- GDP and PCE (Wednesday)
Both reports will set the tone for the short week, especially GDP (Gross Domestic Product) and PCE (Personal Consumption Expenditures), which come out at 8:30 a.m. and 10:00 a.m. Eastern, respectively.
Thursday, markets are closed for the Thanksgiving holiday and Friday will be a short trading day, so we’ll likely see lighter volumes all around.
Gold: Ready to Move Higher?
Gold (ticker symbol /GC) dipped 9.3% earlier this month, hitting a low of $2,541.50. But it looks like that correction is behind us.
We’re now sitting near $2,704 as I write this, right at a key resistance level on the Fibonacci retracement — 0.6018, for those of you tracking it.
Here’s the thing: If gold can close above $2,710, the next major levels to watch are $2,770 and the all-time high at $2,802.
If it clears those, we might even see it push toward $2,900 before it pulls back again. But it’s not just gold we need to watch.
Copper and Silver: The Missing Pieces
Copper (ticker symbol /HG) has been struggling, stuck just above $4 but unable to break $4.15. It keeps testing that level and pulling back, with major resistance up at $4.30.
If copper can break out, it’ll provide the support that gold and silver need to really take off.
Silver (ticker symbol /SI), on the other hand, is hovering just under $32.
For the metals market to pick up steam, we need to see silver break above $32 and copper get back above $4.15. Until then, we’re in a bit of a holding pattern.
Crude Oil: Stuck in a Range
Crude oil (ticker symbol /CL) has been bouncing between $68 and $72 for weeks now.
With geopolitical tensions simmering in Eastern Europe, it’s been hard to see a clear direction.
Right now, crude is sitting near the upper end of that range at $71.03. Until it breaks out of this $4 range, we’re likely to see more sideways action.
What’s Next?
Looking ahead, I think the market rally could continue for the next three to four weeks, but I’m cautious about January.
We’ve had a big run, and January might bring a correction as traders reassess the landscape ahead of the new administration’s inauguration.
For now, my focus is on next week’s economic reports and whether metals can clear those key levels I mentioned above.
Patience will be key as we head into the holiday season.
Let’s see how it plays out.
In the meantime, enjoy your weekend!
— Geof Smith
P.S. This week brought my Perfect Gold Trade strategy another monster win. Click here to see how it all works!
