Gold and Oil Rise, Silver Sinks

Gold has been rising all week, starting just above 1300 per oz opening at $1300.90 per oz and running up to $1320 per oz on Thursday. While Gold moved off these highs Friday the current price is trading about $1312 per oz. Gold is holding on to a solid gain for the week as slowing global growth seems to be constantly in the air. Adding to this narrative was weak manufacturing data out of Europe and the constant Brexit uncertainty. Also, this week the Fed changed its tune from a Hawkish stance on raising rates this year to a much softer dovish stance of holding rates steady due to some potential economic bumps in the road, both internationally and domestic. With this new “wait and see” attitude concerning economic growth, gold benefits from the uncertainty. With the current price trading above $1310 per oz, we have a clear upside bias with significant resistance around $1330, we could see these levels in the next several weeks if the market stays above significant support of $1300 per oz.

Silver is trading down on Friday as we are seeing some signs of exhaustion with overbought levels after Thursday’s short-lived run up to $15.65. For the week, Silver is still seeing an upward bias as the week started out at $15.26 and is currently trading just above $15.40 late on Friday. With the Fed changing its stance on interest rates, there by weakening the U.S dollar, Silver has and should see a benefit to that. A slight pullback after a good week is not uncommon, and often sets up a new round of momentum going into a new week. Support and Resistance levels to watch for are $15.00 support, if broken could change the current upward bias to negative. If Silver can see a close above the $15.60 level next week, the upward bias could move up to the next resistance level of $15.80.

Oil prices have been continuing to rise all week, starting out on Monday at $58.36 running up to a new high for the year above $60 per barrel until Friday when we saw oil slipped about 2%. This retreat from the weekly and yearly highs comes as a lack of progress on the US-China trade talks and weak manufacturing data out of Europe, and a miss in US PMI manufacturing data. These factors shift the focus back to the fears of a global economic slowdown and a slowing of global demand for oil thus impacting the price today. With the resistance price set firmly at $60 per barrel, $66 per barrel is the next highest resistance if oil can close above $60 with significant support at $56 per barrel. If it falls below $56, we could see prices back at $52. The key to these movements is clearly the negative/positive outlooks for growth and demand.

About Bill Poulos

Bill Poulos is an investor who began studying the stock markets in the early 1970s as a hobby. He was an automotive executive with General Motors for 36 years. Poulos retired in 2001, when he and Gregory Poulos co-founded Profits Run, Inc. He is the president of Profits Run. Bill shares his investment experience and wealth managing ideas through Profits Run’s programs. He is the author of Bill Poulos’s Simple Options Trading For Beginners: How to trade options from A to Z explained in plain English. The company reviews how to invest with more information while minimizing risks with courses, software, coaching, and publications. Poulos supports the city of Detroit with his website, Bill lives in Wixom, Michigan with his wife of 48 years, Karen. Bill and Karen have 3 sons and 2 grandchildren.

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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