Bill Poulos reviews the stock market shifts in this past week’s commodities. Bill Poulos regularly analyzes stock market trends to share his view on investing.
GOLD
This week was an interesting week for Gold and other precious metals as there were significant economic news from the Federal Reserve https://www.federalreserve.gov on May 1st and the Non-farm payroll report Friday morning. Gold was down ahead of the FOMC decision to leave interest rates alone. Gold opened at $1285.73 per oz. After the FOMC decision Gold continued to head lower down to a weekly low of $1266.39 per oz, a drop of almost $20 per oz in a couple of days, closing on Friday just above $1270 per oz, which is a very significant support level. After the big drop Monday through Thursday, Friday saw a big jump higher after the release of the robust non-farm payroll numbers that came out Friday morning. As of late Friday, Gold is trading right around $1280 per oz, a one day $10 per oz. jump on Friday. The payroll report was upbeat with 263,000 new jobs in April, including an unemployment rate that fell to 3.6% the lowest number in 50 years. If next week, Gold gains fall back to the support of $1270 per oz, or below, the next significant support is right around $1250 per oz. If Gold can continue to move up to $1290 per oz, the price could move up to the next resistance level of around $1310 per oz.
SILVER
Silver started the week at $15.05 per oz and followed the move of Gold, moving lower before and after the FOMC interest rate statement on Wednesday afternoon all the way down to $14.60 per oz. and then moved up significantly on Friday to around $14.95. This is almost all the way back to $15.00 per oz. This move back up on Friday basically erased the negative sentiment from earlier in the week. This weekly move set a new lower support level of $14.60. If Silver breaks back down below $14.60, the low on Thursday, and then the market drops down to the $14.50 per oz., prices could fall down the $14.20 level in the near term. To the upside, we need to move above the $15.00 level before going long, but with the current overall bearish trend, lower prices seem more likely.
OIL
During the week, Oil was basically flat early in the week and then moved down after the FOMC announcement. US Oil started the week at $62.75 per barrel and set a new weekly low on Thursday at $60.86 per barrel. However, on Friday Oil prices dug out of the hole after the better than expected Non Farm payroll numbers came out and lifted demand for all commodities, including oil. $60 per barrel is a significant support, if we see a continuation of Friday’s bounce, the price could move higher, if prices drop below $60 the next lower significant support level is $56.00 per barrel.