Gold continued to move up this week after the big move last Friday. Gold started the week just above $1300 per oz at $1303 and then moved as high as $1326 per oz on Thursday. Gold moved and has stayed above the $1300 mark all week, as the FED held rates steady on Wednesday. Today with a surprisingly strong employment report, Gold did pull back some, but has continued to trade above $1317 late in the session on Friday, is a good sign that despite a decline in risk in the broader market, gold has maintained prices near the week’s highs, even with a slight pullback. Also, there is some optimism on the U.S. China trade front which also contributed to the stall in bullish momentum. New support this week has been established at about $1300 per oz with resistance at about $1325 per oz. Next week will be interesting to see if it can break higher or will it run back down to support.
This week, like Gold, Silver moved up strongly, above the $16.00 per oz price, leaving the $15.80 support price behind. Today, with strong employment numbers and optimism on the U.S trade front, we saw a significant pullback from those weekly highs. At the end of the session trading around the $15.90 per oz level. To close the week, that $16 per oz price level is a significant price which was broken today as the market moved below it. Next week we will see if the bulls have enough strength to move back to the $16 level and higher, or will the $16 price level become new resistance.
Since the 1st of January, we have seen Oil turn higher by about 18%. This week, we finish out the week with the bulls still pushing the prices higher. Currently trading late in the session on Friday is above the $55 per Barrel price for U.S. Crude, and is the highest daily close this year. This break above the $55 per barrel market is significant and a very bullish signal for the price. Also this week we broke above a technical inverse head and shoulders price pattern, which is also a very bullish signal. New support is set now at about $52 per barrel and $58 per barrel as the next significant resistance level. If the market breaks this resistance at $58 per barrel, $65 to $66 per barrel is the next major price target for the bulls.
About Bill Poulos
Bill Poulos is an author, philanthropist, husband, father, and grandfather. He is a retired General Motors Executive and co-founder of Profits Run, Inc. The company publishes financial training, investment programs, and courses. Bill contributes often to many news sources regarding economic trends and stock market events. He was recently quoted in a Forbes article titled, How Gig Workers Can Fund Their Passion Projects. Bill earned an undergraduate degree and an MBA from the University of Michigan. Poulos lives in Wixom, Michigan with his high school sweetheart, Karen.