Gold and Oil Up As Optimism Surrounds US-China Trade Deal
On this holiday shortened week, Gold ran up hard on Tuesday after the President’s Day Holiday and then couldn’t hold on Wednesday and Thursday erasing all of those gains. Friday is a different story, bouncing off of the Thursday lows of $1,321 per oz to about $1,330 per oz. late Friday. This actually turns out to be higher than the week’s open and a bullish sign after the earlier pullback. Factors in the price increase include some optimism in U.S.-China Trade talk, with Donald Trump and China’s Vice Premier set to meet in the oval office later today. Also, impacting gold prices today are the speeches by FED officials, which may indicate the continued policy of “patience” in raising interest rates in the U.S. Higher rates have a negative effect on Gold prices, therefore if those rates are postponed, there will be a positive effect on the current Gold price.
Silver has had a nice run this week breaking above the $16.00 per oz. level on Wednesday. Thursday there was a pullback, which is not completely unexpected at the resistance at the $16.00 per oz level is significant. This being a round psychological number for the market to break through. Today, we have seen a move backup to test that $16 level again. Currently late on Friday trading is just below the resistance trading at $15.95 per oz. Next week we will see if the price can break through that level and move higher, or if it will drop back down to major support at $15.50.
OPEC’s resolve to slow oil production and optimism around the U.S China trade deal has pushed the price of Crude up even as U.S. production has hit an all-time high. The China trade talks seem to be having the greatest impact on the current prices. The two largest economies in the world have seemed to come together on some of the thorniest issues and the Vice Chairman of China is set to meet in the Oval Office with Donald Trump today and we should be able to get an idea of the progress being made. We will need to wait and see what the effect of that will be, but the optimism is helping the price to trade higher today and for the week at around $57.25 per barrel. The week started out at $56 per barrel. The current trading price is right around significant resistance at $57.50.
About Bill Poulos:
Bill Poulos has been fascinated by the stock markets for most of his life. He began learning the markets when he was in the midst of raising a family of three boys with his high school sweetheart, Karen Asquini. During this time, he was climbing the corporate ladder at General Motors. After thirty years and a lot of experience, Bill retired and began the next chapter in his life. With the assistance of his son, Gregory Poulos, they founded Profits Run, Inc. in 2001. The company provides personal coaching, investment courses, and published materials on making wise trades in the markets. Bill continues to be captivated by current economic trends and contributes to many news outlets. Karen and Bill live in Wixom, Michigan.