Gold has been fairly quiet this week ranging back and forth in a tight trading range, that is until today. The week started out by opening at $1,287 on Monday and running up to $1,295 during the day and then traded in that range for the rest of the week. Friday, however, while opening within the weekly range, dropped hard back to $1,282. This is due to the positive news coming out of the U.S/ China trade negotiations, with a possible breakthrough. This creates less risk in the markets, therefore the flight to safety of Gold becomes less important. Gold did find support at the $1,280 level and is holding there at the end of the market week. If the trade deal doesn’t materialize as expected we could see an explosive move higher.
Silver, like Gold, pulled back and traded lower on Friday. Opening down and ending down at $15.33 per oz. This is a price we haven’t seen since late December. On the Technical side, the market was pulling back toward the 20 days Moving Average. Today we broke through that level with the next major support level at the 50 days Moving Average just above $15.00 per oz. There is also good price support if the price falls below the 50 SMA at around $14.80 per oz.
Oil prices jumped on Friday to end the week strong after a fairly rangy week. Monday prices fell to $52.38 and then today ended up strongly at $55.57 per barrel. Today the bullish move came from the positive news on the trade front between the U.S. and China. Also the expectation that Saudi Arabia will follow through on the production cuts among other OPEC nations ahead of its upcoming meeting. With potential production cuts and potential higher demand from increase economic activity between the U.S. and China is very positive for Crude prices in the coming months. Technically, we with this move Friday, we are sitting at a significant Resistance level $55.60 to $56.00. If prices move beyond this price resistance, $60 per barrel is the next higher price to look for.
About Bill Poulos:
Bill Poulos is a published author, avid trader, retired automobile executive, and a philanthropist. Poulos and his son, Gregory, co-founded Profits Run, Inc. in 2001. Since then the company has helped thousands of individuals around the world make better investment while minimizing risk. Profits Run reviews investment strategies through financial publications, investment software, online courses, and coaching. Bill shares his expertise on trends in the markets by contributing to Investing, LinkedIn, Yours.org, and here on Medium. Bill and his wife, Karen, live in Wixom Michigan where they have raised three boys.