Gold dropped today as the U.S dollar strengthened on positive economic data. It is currently trading around $1220 per oz mid-session on Friday. This is down for the week, but despite the choppy up and down market, it is on track for a monthly gain, which would be the second positive month in a row. Also, we have had the hawkish Federal Reserve policy of raising interest rates, which can up the pressure on Gold as the U.S dollar which has been strengthening. As gold is generally considered a safe haven, an economic risk, especially in the U.S., has strengthened this may put downward pressure on Gold into next year. Therefore, despite the two-month gains, many are still bearish on gold into the first quarter of 2019. Of course, this could change if the economic strength in the U.S. and global economic growth slows down the need for the “safe haven” of gold increases. As with many things; only time will tell.
Silver is trading lower today at about $14.15 which is up from a low of $14, slightly lower for the week, also slightly down for the month which started at about $14.25 per oz. Mainly we have seen silver chop up and down this month, but it is holding at a support level just above $14 per oz. If this support level holds the trading range has been between $14 and $14.80 for the last several months, so until it breaks out of this range, either higher or lower, we can expect it to continue to chop back and forth.
The good news for Oil is that this week we may have found a bottom from 7 weeks of decline. November’s sell off due to the stronger US dollar, increasing supplies and slower global economic growth has made November, the worst monthly decline since 2008. Currently, trading just above $51 a barrel for US Crude this week has been chopping around, finding solid support at $50 per barrel. However, concerns of oversupply remain a reason for worry as Russia has indicated that curbing production is not a priority. These factors of oversupply and slower growth are setting up a bearish sentiment going into 2019. We will see if OPEC has any change in policy due to these factors, but for the meantime enjoy the lower gasoline prices.
About Bill Poulos:
Bill Poulos has been studying and investing in the markets since the early 1970’s. He has since created Profits Run, Inc. with his son, Gregory Poulos. Profits Run reviews investing skills of all levels while minimizing risk through a myriad of products and training programs. The publishing company supplies online courses, coaching, investment software, books, and other materials to help educate individuals on the markets and investing. Poulos shares his knowledge of current trends and economic changes through articles on Investing, Medium, Yours.org, and on LinkedIn. He lives in Wixom, Michigan with his wife of 48 years, Karen.