Weekly Commodities Update: We Need More Time

Bill Poulos is a published author, financial educator, a retired General Motors executive, and a Greek-American Investor. Bill’s parents were first generation immigrants from Greece that settled in Detroit, Michigan. Growing up in Detroit Bill met his high school sweetheart, Karen, who would later become his wife. Bill attended the General Motor Institute where he earned a bachelor’s degree in engineering. He retired from GM in 2001 when he co-founded Profits Run, Inc., a financial publishing company. Profits Run strives to provide individuals with publications to make educated investments with minimal risks. Profits Run achieves this by publishing articles on investment strategies, online courses, investment software, and coaching. Profits Run has helped investors in over 150 countries around the globe. His book, Bill Poulos’s Simple Options Trading For Beginners: How to trade options from A to Z explained in plain English, can be found on Amazon. Bill and Karen were married in 1969. They have 3 sons and 2 grandchildren. Below, Bill Poulos share this week’s commodities price update.

GOLD

Gold has had a wild ride this first week of December. Gold opened the week at $1464 per oz. and then moved up strongly on Tuesday to a high of $1481.71 on news that the trade deal may not happen as soon as has been anticipated. However, on Friday, very strong Non-farm payroll numbers were released and Stocks took off and we saw a sell-off of gold all the way back down to below Monday’s open. Also, there were comments out of the White House today that were more positive concerning the US/China trade deal sooner rather than later. These news items have trading later in the session Friday just below $1460, setting up a lower close on the week. Time will tell if the trade news comes to pass, however the economy just seems to keep moving forward, regardless of the political noise of the day. There is a very strong range that has been established for the last several weeks with $1450 as support and $1480 as resistance. This week even with some more dramatic moves, these were well within this current trading range. We will see if next week will continue to move sideways or if we can break out of the current trading range.

SILVER

Silver opened at $16.99 this week and ran up to a high of $17.30 on Wednesday before crashing on Friday down well below this week open and lower than Silver has been since early August. As of late Friday, silver is trading at $16.55 well off the start of the day, primarily due to the better than expected payroll numbers released on Friday morning New York time. Also some positive news regarding the potential “Phase 1” of the U.S China Trade deal came out, helping to push the stock market higher was bad news for precious metals and silver especially, push prices down to new seasonal lows. This market has become much more volatile and news driven than normal.

Oil

Oil, which has been pretty volatile lately, has had an especially good week. U.S Oil prices opened the week at $55.73 per barrel and moved up steadily this week helped by lower oil inventory numbers released this week. Then on Friday morning it was announced that OPEC had approved production cuts which pushed prices up even higher throughout the day to a daily high of $59.80 before settling back to around $59 in late Friday trading. Overall we have had a strong week, broke the resistance level of $58.50 but still not strong enough to break the $60 mark. The trading range with the good news is higher and has made up all the losses for last week and then some.

Bill Poulos is an author, retired automotive executive (General Motors), and co-founder of Profits Run, Inc. Bill offers insight into the economy and trading.

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