Gold opened the week at $1748.60 and is headed for a weekly loss, the first one over the last 3 weeks. There is optimism around the recovering economy lifting the dollar and bond yields which reduced the demand for gold due to the non interest bearing nature of precious metals and gold specifically. Prices in late session trading on Friday are holding at $1733 in a fairly range bound pattern for the last several days between $1720 and $1740 per oz. So, while we are headed for a weekly loss in Gold, the prices have moderated and are holding steady for the last few days. If prices are holding in this range overall they are really in limbo waiting to see what the post-covid economy does. We can expect choppier trading while so much uncertainty is around.
Silver prices have had a rough week, opening at $26.22 and have traded down to the $25 price level, where they have steadied out just above there. The $25 price level is a solid support level that is holding for now. Price action near the end of Friday trading is $25.11 just above support. If silver breaks lower next week, the $24 price range and the $22 price range are the next lower support levels. There is growing concern about new Covid pandemic outbreaks and the near term effects to the economic growth of the country and demand for industrial silver if that occurs.
Oil opened the week at $61.42 this week and has really been running up and down in chaotic moves back and forth all week. The wild volatility has ranged between $61.50 and $57.50 all week due to potential lower demand as renewed concerns for Covid related shutdowns arose then the Container ship ran around and blocked the Suez canal became the next new crisis, along with higher than expected crude inventories and the Gulf refineries coming back up to speed after the Texas coast freeze. These events have created a great deal of volatility which has whipsawed the oil prices this week. To add to the uncertainty, it was announced on Friday that the shutdown of the Suez Canal might drag on for several weeks adding to the uncertainty and pushing the price back up to the top of the channel at $60.75 to end the week down a little overall after a very volatile week.
Bill Poulos is an investor, financial educator, and retired automotive executive. In 1974, he began to follow the stock market and invest as a hobby. Departing from GM in 2001, Poulos employed his trading experience to co-found Profits Run with his son Greg. A financial publishing company, Profits Run, Inc. strives to teach regular folks safer trading techniques with a mind towards risk management. Poulos has developed, through Profits Run, many tools and programs such as Earnings Profit Alert, 20/30 Wealth Trader, Premium Income Alert, Crypto Profit Alert, Instant Options Income, Real Wealth Alert, Rapid Income Engine, Forex Profit Accelerator 2.0, Premium Income Letter Profits Run Coaching, and Profits Run Alliance. Bill lives with his wife, Karen of more than 50 years in Michigan, where Profits Run is located.