Commodity Update: Economic Activity Improves Commodity Prices
GOLD
Gold opened the week at $1776.81 per oz and has been flat most of the week. After the Federal Reserve made the announcement on Wednesday that they would be continuing the loose monetary policy they have been pursuing during the Covid pandemic by keeping interest rates at almost 0% as expected, gold moved down slightly. Even with the week ending on a bit of a slow but down beat, we are sitting just above support based on the 50-period moving average. Current trading late in the Friday session is right at $1770 for just a modest decline for the week, but well within the current consolidation zone. Support is holding right at around $1765, and resistance is up around $1800 a tight range that will need to be broken before investors can have a better idea of the trend going forward.
SILVER
Silver, like gold has really been in a very tight consolidation this week, opening at $25.97 per oz., with a high of $26.45 and a low of $25.80, we have seen the range bounce well inside one dollar range. On Friday, silver moved back down to the bottom of the range and is holding right at the 50-period moving average, which could make for a good price to bounce higher from. The longer-term trend has been moving higher as the Covid-19 vaccines have been helping the economy to open, thus increasing the industrial demand for silver. Current resistance is around $26.50 which if the current month-long trend continues and we break out of this consolidation, could move up to the next resistance level around $28 per oz.
OIL
Oil opened this week at $62.11 per barrel right at support, sitting on the 50-moving average, which has been acting as a pretty good price to bounce from. This bounce happened on cue and we moved up right through the monthly resistance at $63 to a weekly and monthly high of $65.45 on Thursday. While Oil prices pulled back from those highs due to some fears on Friday that the industrial demand may be weaker than previously thought by some additional virus breakouts around the world, we are still on track for a weekly and monthly gain overall. With Friday trading holding above $63 per barrel. Oil prices are being held a bit captive to the overall demand picture which in general has been more positive moving forward.
Bill Poulos is a retired automotive executive, investor, and a financial educator. After retiring from General Motors in 2001, Poulos drew on his decades of trading experience to co-found Profits Run with his son Greg. A financial publishing company, Profits Run, Inc. strives to teach ordinary people smarter trading techniques with good adherence to risk management. Bill has developed many programs for Profits Run including Instant Options Income, 20/30 Wealth Trader, Crypto Profit Alert, Real Wealth Alert, Premium Income Alert, Earnings Profit Alert, Premium Income Letter, Rapid Income Engine, Forex Profit Accelerator 2.0, Profits Run Coaching, and Profits Run Alliance. Profits Run is located in Michigan, where Bill lives with his wife, Karen of more than 50 years. They have three adult sons and two grandchildren. To keep up with Profits Run, follow Bill here on Medium.