Many markets are trading flat this morning as investors get ready for tomorrow’s Thanksgiving Holiday. Stock index futures are unchanged while gold and silver are trading right around the unchanged mark as well.
Although volumes may be light today ahead of the holiday tomorrow, there is a fair amount of data set for release today. Durable goods data looked good at first glance although was actually quite disappointing when one looks at the core figures. Weekly jobless claims this morning showed a rise of 21,000 to 313,000 which is the highest level since September. There were no special considerations to explain this spike in jobless claims, and one has to wonder if the labor market is again showing further signs of underlying weakness. Personal spending rose slightly. Investors are still awaiting housing data as well as consumer sentiment later this morning.
Markets have not shown much reaction to any data thus far today, and they will likely remain quiet throughout today’s session. While all U.S. markets are closed for the Thanksgiving Holiday tomorrow, markets will be open Friday. This trading day tends to be very light as well, and it is likely that investors will not return to the table until next week.
Silver is building some upside momentum. The market has been trending higher since finding a bottom earlier this month and is currently testing some recent lows from October. It would seem that a test of $17 per ounce is on the horizon, and if silver can maintain trade above that level additional buying interest may develop. Of note in recent trade is higher volumes on the buy side. This could potentially be indicative of larger market players acquiring positions and accumulating, and if so this could potentially be considered bullish for the metal.
Higher stocks, a higher dollar and lower crude oil all continue to weigh on silver and precious metals. OPEC will be meeting on Thursday and it will be interesting to see if action is taken to halt the slide in oil prices. Some expect that production quotas will be reduced.
The dollar index continues to trade at four year highs and looks strong. While the greenback is currently going a bit sideways, the market does appear to be making higher lows which may be considered bullish. How much further the dollar can run remains to be seen, but current levels or higher levels may prove to be a formidable obstacle to higher silver and precious metals prices.
Physical demand for silver has been strong in recent weeks and that trend may continue. Silver is attractive to many at current price levels, and this physical demand may keep a floor under prices for the foreseeable future.