Gold (Cash Index): The Index extended its major (long-term) downtrend to a low of $3,870.47 before closing October at $3,875.58, down $281.29 (6.77%) for the month. Monthly stochastics remain above the oversold level of 20% indicating the market has time and space to move lower. Fundamentally, pressure continues to come from expectations for higher interest rates globally to battle inflation. Theoretical Positions: Investors would’ve shorted the market at the March close of $4,677.07 based on the completion of a bearish outside month. Additional short positions could’ve been established as the index took out its previous 4-month low of $4,100.32, putting the average short near $4,388.69.
Silver (Cash Index): The Cash Silver Index confirmed a major downtrend at the end of March before posting a new 4-month low during June. The Index extended its trend to a low of $48.8716 during October before closing at $49.1220, down $11.2799 (18.67%) for the month. Monthly stochastics are still partially above the oversold level of 20% meaning there is still time and space for the market to move lower. Theoretical Positions: Investors might’ve sold the market near the March settlement of $75.13 based on the completion of a bearish outside month with additional shorts established at the new 4-month low of $61.03, putting the average short position at roughly $68.08.
Copper (Cash Index): After completing a bearish key reversal during September, telling us the major trend had turned down, the copper Index consolidated during October before closing at $6.4310, down $0.1260 (1.92%) for the month. Monthly stochastics remain above the overbought level of 80% after establishing a bearish crossover at the end of September. Theoretical Positions: Investors may have established long positions a number of times over the past few years. These positions could’ve been liquidated near the June settlement of $6.1955. Investors would be short the Index near the September settlement of $6.5570.
Palladium (Spot futures): Palladium still looks to be in a major downtrend with monthly stochastics below the oversold level of 20%. Theoretical Positions: Investors might be looking for an opportunity to go long the market.
Platinum (Spot futures): The market extended its major downtrend to close at $1,438.00, down $264.30 (15.52%) for the month. Theoretical Positions: Investors might’ve gone short at the May settlement of $1,911.10.
