Gold has been just ranging around all week until Friday when it exploded from $1,280 per oz. to hit $1,300 per oz on intraday trading for the first time since last June. As of late Friday, it retreated a bit but is still trading right around $1.298 per oz. Why the big jump today? Well, the gains can primarily be attributed to the safe-haven demand created by the weaker U.S dollar because of uncertainty surrounding key geopolitical events happening next week. For example, the US Senate failing to end the partial U.S government shut down, the European central bank signaling a softer outlook in Europe, the China trade talks have not produced any tangible results, and unresolved Brexit issues as well as economic turmoil in Venezuela. These issues are creating potential problems for the economies of the world and are creating a safe-haven effect for Gold. If the price can close above $1,300 per oz, a solid resistance price level, the price could move much higher.
This week, silver had remained range-bound until, Like Gold, moved strongly higher Friday on safe-haven demand across the precious metals, due to significant events that are causing uncertainty at home and abroad. Friday’s rally saw buyers come in and push the price up to $15. 69, which is a very strong resistance area. Currently, late on Friday, it is trading just off those highs at $14.67. If next week, buyers continue to push silver prices beyond resistance of $15.80, silver could rally up to the next resistance level between $16.50 and $17.00 per oz, levels not seen since last summer.
This week crude oil has been stuck in a trading range between $54 and $55 per barrel. Until Friday that is when we saw the bulls come in and push the price above resistance at $55.00 up to $55.45. This is due in part to continuing political and economic troubles in Venezuela. Since the price broke $55.00 resistance level today, $57.50 is next resistance level onto the $60 per barrel level over the next several weeks is possible. Many feel like higher is more probable than lower unless the price can’t sustain these levels and falls below support at $50 per barrel, then a move lower to $45.00 per barrel would be likely.
About Bill Poulos:
Bill Poulos has been captivated by the markets for most of his life. He began trading in the early 1970’s while raising a family. During this time Bill was also climbing the corporate ladder at General Motors. As a result, his hobby of trading in the markets included many mistakes and many lessons learned. Upon retiring from GM, Bill and Gregory Poulos (his son) started Profits Run, Inc. to help guide investors with the wealth of knowledge he had acquired. Today, the company teaches individuals by decreasing the learning curve and eschewing the mistakes Bill made in his early years of investing. Profits Run, Inc. is headquartered in Wixom, Michigan.