Disappointing Non-Farm Employment Change Means Gold & Silver Safe Haven For Investors
Gold jumped up to $1300 per oz. on Friday based on several factors, including disappointing U.S. jobs report that was significantly weaker than expected, with only 20,000 new jobs as well as fears related to Chinese market weakness. The U.S. labor market has been adding more than 200,000 new jobs per month for the last year and the market was expecting approx.180,000 new jobs in February, so the 20,000 new jobs reported for February, comes as a big concern. Also, with the concern over the Chinese stock market drop of 20%, Gold is certainly back in fashion as a safe haven investment moving up after losing ground all week long. This week started out with Gold continuing the slide of the last few weeks at $1293 per oz, moving down to $1281 per oz as a low on Thursday. Currently late in the session on Friday gold is trading for just above $1297. $1300.00 per oz is the current resistance and $1280 per oz is the current support level.
This week Silver opened at $15.18 per oz. and then moved down below $15 per oz. on Thursday for the first time this year, but with the poor U.S. jobs data and the subsequent fall in the U.S dollar index, Silver along with Gold jumped on Friday’s trading up to over $15.30 per oz. These levels are running back into resistance right at $15.30. If Silver can close above $15.30 the next resistance level is $15.50. Support is solid at $15.00 per oz, below that the next support level is around $14.50. We will look for these levels for the next several weeks.
Oil prices have been mostly sideways this week hanging around the $56 per barrel level. Friday Oil moved down below $55.00, but quickly moved up back to around $55.50 later in the session, putting Oil back up into the sideway trading range of the last several weeks. This move today tested the $55.00 level and is considered to be a solid floor, which is bearing out as a very solid level. While Saudi Arabia is following through with its reduced output cuts, U.S. oil production remains strong neutralizing the OPEC affect, with U.S crude stockpile increasing on domestic production. This week the government data showed a 7.1 million barrel increase in inventories. So, the sideways grind continues until we move up beyond $60 per barrel at major resistance or below $53 per barrel on the support low side.
About Bill Poulos and Profits Run
Bill Poulos is the president of Profits Run, Inc. He and his son, Gregory Poulos, co-founded the company with the mission of giving people the tools to invest in more simply while minimizing risks. The company offers materials on investing, online courses, and coaching to help individuals with their wealth management. Bill is a published author and contributes frequently to many online platforms. Profits Run has helped over 100,000 investors around the globe make smart trades. Poulos and Profits Run, Inc. created the Profits Run Starfish Award to honor community members doing extraordinary things to make a difference to others. Bill and his wife, Karen, live in Wixom, Michigan.