Bill Poulos has had over forty-five years of experience investing in the markets. He shares his wealth of financial knowledge with his Profits Run community with books, articles, software, courses, and coaching. Profits Run educates on best investment strategies while minimizing financial risks. Learn more about Bill Poulos and Profits Run by subscribing to their YouTube Channel. Bill and his wife, Karen, live in Wixom, Michigan, where Profits Run is headquartered. Below, Bill gives us this week’s commodities update.
GOLD
The big story with Gold this week is that it opened at $1507 per oz, which was just above the significant support at $1500 per oz and could not maintain that high and has basically closed below that $1500 level all week. This trend also continued Friday as the price rolled over again after trying to rally on Wednesday and Thursday but moved lower due to stronger than expected U.S. Retail Sales number released on Friday morning. Friday trading late in the session is right around $1491 and looks to close the week out below the $1500 support level. This is Significant as the price of Gold has been closing above that level since early August. Next week we have the FOMC meeting, which will announce any rate cutting decisions. The prospects for a rate cut have been cut as more and more positive economic data has come out showing real strength in the economy. Lower rates tend to be bullish for Gold, so next week’s rate-cut decision will impact Gold prices next week. Stay tuned….
SILVER
Silver prices have been chopping and range bound all week around support of $18.00 per oz, until Friday that is. With the unexpected strong U.S. Retail sales numbers, the prices of all precious metals, but especially Silver dropped hard during Friday’s trading with Silver trading below $14.50 per oz in late session trading. The next significant support level is right around $17.00 per oz. Next week’s Federal Reserve FOMC meeting rate cut decision could help determine whether Silver prices rebound higher or fall lower to support. Rate cuts generally are positive for precious metal prices as the dollar weakens with lower rates and strengthens with higher rates. There is generally an inverse relationship there, so their decision could have an immediate effect next week in the direction of the price action. We will need to wait and see but the odd are weakening for a rate cut with positive economic data being released over the last few weeks.
OIL
Oil has been very volatile over the last few weeks, whipsawing up and down. This week, mainly down. US Oil opened this week at $56.60 per barrel and moved up on Monday to close right at $58 and then has moved down all week to a low near $54 per barrel. Currently trading just below $55 per barrel in late Friday trading, the price has had lower closed every day since Monday. In addition, OPEC’s decision to not cut production rates despite weakening demand is putting even more downward pressure on prices. The current range over the last month is really between about $53 and $58 per barrel with current trading closer to the bottom of that range then the top. If Oil prices move below $53 per barrel over the next several weeks, the major support level is around $50 per barrel not seen since early January.