Gold & Silver Back Down To Support Levels As Oil Saw New 2019 High
Gold ran up above $1300 per oz on Wednesday then broke back below the $1300 Support level on Thursday and now has moved right back to $1300 on Friday. Currently Gold is trading at $1302.00 mid session on Friday. Several factors are behind the jump back to the $1300 level. Gold as a safe haven asset received a boost from weaker than expected manufacturing sector data, supporting demand for gold and other safe haven assets. Gold also received a boost from the renewed optimism surrounding a positive outcome in the U.S. China trade negotiations, with China state media saying there is “concrete progress” on the text of the deal. This seems to be more substantive progress in the negotiations. Also a weakening U.S. Dollar is a boost to Gold as a weaker dollar can be supportive for commodities priced in Dollars like Gold.
Silver, like Gold slumped on Thursday of this week, but jumped back up, due to the same safe haven asset effect that impacted the Gold prices. Although Silver has not moved back up to the $15.50 resistance price level which would bring in more buyers. So until it hits that $15.50 price, we may continue to see Silver chop sideways. When Silver does hit the $15.50 per oz level that could be enough to bring buyers in and push the price up toward the $16.00 per oz price resistance level.
This week was a good week for Oil prices, working their way up to a new 2019 high of $58.93 per barrel earlier today. This new high was short lived however, as price backed off those highs on worries around the global economic slowdown and soaring U.S. production rates the brought the price jump down off of today’s highs. Another wildcard is OPEC production, which has been reducing the production to push inventories lower and prices higher, however, it appears that OPEC may be slowing these production cuts allowing inventories to remain higher and prices may go lower still.
About Bill Poulos
Bill Poulos is the president and co-founder of Profits Run, Inc. In 2001, Bill and his son, Gregory Poulos, co-founded the company. The company’s mission is to give people the tools to make smart investments while minimizing risks. Profits Run produces materials on investing to assist individuals with their wealth management. Poulos is a published author and contributes often to many online platforms. Over 100,000 investors around the globe make smart trades with the help of Profits Run. Bill and his wife, Karen, were high school sweethearts and were married in 1969. They have raised three sons and enjoy spoiling their grandbabies.