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GOLD
Gold has been in a consolidation for the last several weeks now, ranging between $1380 per oz and $1420 per oz. roughly for the last 3 weeks. While this consolidation continues, gold was boosted back into the upper range well above $1400 per oz. by Fed Chairman Powell restating his dovish comments about cutting Fed Fund rates, in testimony to Congress, over the next several months. Thursday, we had the release of inflation numbers, which ticked higher, and caused gold to retreat some from the week’s highs, but remaining closing above the $1400 price. Friday has gold prices moving up again and on track to close well above the $1400 price level, currently trading just above $1410 in late trading Friday. We will look to see if Gold will break out of the current consolidation in the next couple of weeks. If gold can close above $1420, we could see a push higher, based on is the potential for U.S dollar weakness as the Fed lower interest rates.
SILVER
Silver started the week slow, from last week’s big drop down below $15 per oz. However, over the week’s trading has been able to move higher, based in part on the Fed Chairman’s comments about lowering interest rates. Silver will close the week on an uptick with trading late on Friday above $15.20. This move up this week, putting a pause on the decline over the last several weeks, at least for the time being. If we can get a break above $15.30 per oz next week, we could see a move higher, up to $15.60 or above.
OIL
Oil has moved up all week, opening at $57.61 per barrel and moving up above $60 per barrel Wednesday, Thursday and Friday. Friday trading late in the session is about $60.17. So, a good week for energy hawks, as the $60 per barrel price is right at resistance. If the market can close above this level and move up higher next week, it may have a nice breakout. With bullish forces in play, including geopolitical tensions creating uncertainty around Iran’s acts of aggression in the Middle East potentially affecting Oil shipping. Also, helping to push prices up this week are worries over supply issues as U.S producers in the Gulf of Mexico have cut output by half due to the potential of Tropical Storms. If these factors come into play next week, Oil could jump even more. The next major resistance level is right around the $64 per barrel level.