Bill Poulos is an enthusiastic scholar of the markets. What began as a hobby in 1974 has become a way of life for the Profits Run Co-founder. Bill’s work is frequently featured on Investing, LinkedIn, medium and More. Poulos is a philanthropist that believes in giving back to the community and celebrating those who have done just that. Here, Bill gives an update on the Commodities Market.
GOLD
Gold fell to its lowest price this week to close out the week down about $10 per oz. The week started at $1248 and is trading at about $1238 late on Friday. Gold continued its slide for the week as demand for the U.S. Dollar increased after the strong retail sales numbers calmed fears of a slowing domestic economy. In addition to the retail sales numbers industrial production was also up in November, this pushing the Pushing the US dollar to a 19 month hid. The US dollar index rose .55% Friday adding to an already weakening Gold market this week. The strength of the dollar has been a key driver of Gold Prices as when the dollar is stronger, there is less demand for Gold. All eyes are now on the Federal Reserve who is holding their FOMC meeting next week, to see if they will keep rates the same, or raise them as has been expected for the last several months. With weaker Employment numbers last Friday and Huge market volatility, the FED has indicated that they will be cautious before raising rates. If they keep rates the same, we should see Gold strengthen next week. We will just need to wait and see.
SILVER
Like Gold, Silver has tumbled on Friday as the US dollar rose to new highs. However, Silver had been trading higher over the last few days, so Friday’s big drop brings the price back to about where Silver started the week at $14.59 per oz. The High for the week was right at $14.80 which is right at resistance for the last several months. This is a significant resistance level on the way to $15.00 per oz, which is large, round, significant psychological level.
OIL
Oil ended the day down sharply Friday due to the stronger U.S dollar and potential weakening global demand indicated by weaker economic data out of China a major user of energy. Friday’s drop to $51 per barrel concluded the week down from the Monday open of $52.82 but also down from the weekly high of $53.24 per barrel. The FED meeting next week could also impact the Oil prices if they strengthen the U.S dollar with a rate increase or weaken the dollar by keeping the rate the same. If the market trades below $50 per barrel, a significant support it could go lower still.