Bill Poulos is the co-founder and President of Profit Run, Inc. He shares his vast experience in trading with his community of investors. Here, Bill updates us on the commodities this week.
Gold opened on Monday just above $1504 per oz and moved down from there to close on Monday at $1488.20. For the next several days gold prices basically just moved up and down in between that range, due to uncertainty around the U.S- China Trade talks. On Friday initially rallied but fell right through the weekly low to move all the way down to a low of $1474 as a better than expected Consumer Sentiment Report pushed the price lower. Gold did find some support and moved off these Friday lows to move up some in trading late in the day on Friday to around $1484. This week has been rangy due to the market uncertainty and moving lower Today on positive U.S economic news, however in the longer term, gold is looking bullish as Central banks around the world continue to talk of lowering interest rates as the global economies are slowing.
Silver opened the week at $17.52 and moved up to a weekly high of $17.95 before moving right back down to a close on Thursday of $17.50. Friday has remained steady on Friday moving off the lows to trade back up to right around $17.50, as investors are confident that there could be at least a limited trade agreement with China which would stabilize the markets. There does appear to be solid support around the $17.50 price level with resistance right at $18.00 per oz. We will need to see as the Central banks continue to advocate for looser monetary policies around the globe, which should push prices higher over the next several months.
Oil started the week at $52.91 and ranged between $52 and $54 all week due to uncertainty around the U.S-China trade talks come later in the week. But on Friday the price of Oil jumped up on the news that an Iranian oil tanker had been hit by missiles earlier in the day. The surge in prices has moderated some by optimism around at least a limited Trade agreement between the U.S and China. Trading late in the Friday session is right around $54.65 which will close the week up almost $2 per barrel. We are looking at significant resistance at the $55 per barrel price, which is expected to hold if there are no more disruptions in oil transportation and distribution due to any new Middle East conflicts.