Bill Poulos is the President and co-founder of Profits Run, Inc., a financial publishing company. The company’s mission is to show people more simple and lower-risk ways to invest their money, even during a pandemic. Profit’s Run is named from a popular saying amongst traders, “Cut your losses and let your profits run.” Profits Run offers various products and programs, including Earnings Profit Alert, 20/30 Wealth Trader, Premium Income Alert, Automatic Income Engine, and Real Wealth Alert. Bill brings a wealth of experience and knowledge to Profits Run. He holds a bachelor’s in engineering, a finance MBA, and 45 years of trading experience. He lives in Michigan with his wife of 50 years. Below, Poulos updates us on this week’s commodities.

GOLD

Gold took a big dip this week but has completely recovered from the drop as of Friday. Gold opened the week at $1734.60 per oz., then dropped on Wednesday to a low of $1693 and with a big push up on Friday is trading right at $1734 again. This price action has re-establish a strong support at the $1700 level and has left the overall gold market in a bullish pattern as we have had higher lows and higher highs since the Covid-19 pandemic rattled the markets back in March. In Fact, the previous high closes pre-pandemics in the $1660 to $1680 level before the big drop down to the $1460s mid-March. Now we are steadily above the $1700 mark as the economy has started to open and economic activity is picking up. As gold continues to grind higher as the Federal Reserve and other central banks are cranking out currencies, which naturally devalues them and leaves Gold as a natural investment choice, which likely will continue throughout the Summer.

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“This price action has re-establish a strong support at the $1700 level and has left the overall gold market in a bullish pattern as we have had higher lows and higher highs since the Covid-19 pandemic rattled the markets back in March.” — Bill Poulos

SILVER

Silver, for most of the week has been sideways trading between $17 and $17.50 per oz, a daily tight range, until Friday that is, when silver broke out of the range and has been trading above $17.50 most of the session. Currently, silver is trading above $17.80 in later Friday trading. Remember that Silver is more or an industrial metal than an investment metal, which means as positive signs of economic recovery come out, silver naturally becomes worth more due to higher industrial demand. Having said that, silver is also a beneficiary of the loose monetary policies of the Central Banks and the devaluing of the currencies that is pushing all precious metals higher. This currency devaluation and the unique industrial use of silver, which is important to any post-Covid-19 recovery should continue to keep the demand higher for silver, well into the summer.

OIL

Oil this week has been trading in a tight trading range between $31 and $34 per barrel. This week we have seen a balance of positive and negative news for oil prices. Iran has been showing some improved speedboats that could threaten the U.S. and oil routes in the middle east, at the same time EIA inventory news showed a huge unexpected increase of almost 8 million barrels added to the stockpiles this week. These two things seem to be off setting each other as of trading on Friday with very tight trading within the tight trading range. The big thing keeping things quiet for the moment as the week comes to an end are the tensions between the U.S and China as how these might affect the demand for Oil in the coming weeks and months.

Bill Poulos is an author, retired automotive executive (General Motors), and co-founder of Profits Run, Inc. Bill offers insight into the economy and trading.

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