Finally, November is here, and the initial setup for the first week will be challenging, especially for the Gold market. We expect the Federal Reserve to acknowledge the effectiveness of the QE program since the pandemic started, and with Covid cases declining, there will now be a need to taper. They will reduce asset purchases by $15 billion each month, effectively taking it to zero by June, when their focus shifts to interest rate hikes. Additionally, Friday, we will have the latest jobs reading, and with two straight months of disappointing figures, we could be setting ourselves up for a blowout number.
I must reiterate that it is essential to have a "real assets" portfolio beyond Gold and Silver due to the type of inflation that we will continue to see. We will be targeting Copper, Platinum, Crude Oil, Wheat, Cotton, and Coffee. For many of these commodities, I have discussed the bullish nature of the fundamental backdrop in previous articles written. If you have never traded futures or commodities, I just completed a new educational guide that answers all your questions on how to transfer your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
Weekly Platinum Chart
For those committed to metals, I would focus on far-dated Platinum futures as the price trends lower. The current chip shortage has forced auto manufacturers to cut production temporarily; however, once they resolve the bottlenecks, we should see auto manufacturers replenish their stockpiles. Ideally, a strategy we would implement for accounts 50K and up would be to buy 50 ounces of Platinum at $1015/oz and any decline below $995/oz and hold for a potential rise to $1250 by year-end 2022.
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PHILLIP STREIBLE Chief Market Strategist www.bluelinefutures.com Main: 888-441-8555 Direct: 312-858-7303 Fax: 888-370-2221 Blue Line Futures LLC 141 W. Jackson #2845 Chicago IL 60604 Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.