Gold has been gaining ground this week as that continued Friday as the Jobs report came out weaker than expected. This weaker than expected report reduces the chance that the FED will hike rates this month and into next year. In addition to the weaker Jobs report, the FED issued an accommodating statement mid-day on Thursday in response to the stock market “free fall” 700+ point down two trading days in a row. This after last week’s more dovish statement about Interest rates being “near neutral” which started the week on a “dovish” foot already. This puts downward pressure on the U.S dollar resulting in a stronger Gold market. This week Gold prices started at $1230 per oz and look to close above $1248 a weekly gain of 1.46%. Above $1260 is the next resistance level set back in July of this year.
Silver like Gold has had a positive week, opening on Monday at $14.35 per oz and trading late Friday above $14.60 per oz for a 1.74% gain on the week, very similar to Gold. Current resistance is sitting around $14.80 with solid support right around $14.00 per oz.
This has been a pretty volatile week for the price of oil. At the start of the week, all the talk was on the lower demand for energy next year, however as the week wore on there was reported that inventories shrank, but production cuts from the OPEC meeting seemed elusive. This created a trading range between, $54.54 per barrel for US Crude on Monday down to $50.12 per barrel as Thursday’s low as there was waning hope for a production cut out of OPEC. However, at the last minute OPEC with Russian involvement in the meeting, announced a surprise deal to cut production by a massive 1.2 million barrels per day beginning in January for the first 6 months of 2019. The immediate reaction was a 2.2% increase in the price settling at 52.60 as of this writing with one hour to go in the trading day Friday. Key resistance is at the $54 per barrel mark and support remains down around $50 dollars per barrel.
About the Author:
Bill Poulos began studying the stocks as a young family man in Detroit, Michigan. What was once just a hobby turned into a passion for him. In 2001, Bill co-founded Profits Run, Inc. with Gregory Poulos, his son. Profits Run supplies publications, software, coaching, and training to educate individuals on making smarter trades. Bill has earned an engineering degree from GMI and an MBA in finance from the University of Michigan. He married his high school sweetheart in the early 1960s. Today, they live in Wixom, Michigan where they have 3 grown sons and 2 grandchildren.