Bill Poulos is the president and co-founder of Profits Run, Inc., a financial research company. Profits Run provides materials that educate investors on best practices while navigating the markets. Bill shares his experience with viewers on YouTube and on https://www.billpoulos.com/. Poulos shares this week’s commodities numbers with us below.
Gold
Gold opened the week at $1516 per oz, ran up Monday and Tuesday. On Wednesday and Thursday, the Gold moved back down but found solid support at the $1500 per oz price level and is settling out early on Friday with the Asian and European markets steadied just hanging out moving back on forth on Thursday just above $1500. With the political theater and the US- China Trade issues grabbing all the headlines, the market isn’t sure what direction to take and has been just chopping sideways. This should play out over the next several days, however, what is clear is that there are plenty of buyers that are willing to come into the market at support of $1490 which is a strong signal that when things settle down the market could easily move back up to $1550 or higher. As of Friday morning, gold is trading just above $1490. We will see if this level hold for the remainder of the session.
Silver
Silver started the week out on a bullish note, moving up to above $18.70 and then on Wednesday took a big slide below and $18.00 and Thursday and continued down to $17.75 and early Friday morning is still trying to find support. Now that the Political theater is playing out, Silver should be able to find a support level between $17.50 and $18.00 per oz. If we can find stability at this longer-term support level going back several months, it is very possible we could see Silver moving back up toward the $20 mark over the next few months. As of Friday morning, the price is down but holding right around $17.50 per oz.
Oil
After last week’s huge jump from about $55 to over about $62 last Monday, due to the Saudi Oil Field bombings, the market retraced about 50% of that jump last week back down to about $58 per barrel. This retracement has continued this week, with oil prices moving back down from $58 to just above $55 per barrel in early trading Friday. The market is trying to find support at or above the $55 price level which is a solid support zone. The last few days oil prices have been choppy just ranging between $55 and $57. We will be looking for a bounce off this level or a continuation downward to complete the retracement as the tensions in the middle east either ease back or if there is further escalation.