Weekly Commodity Update: Economy Rebounds?
Bill Poulos began investing in commodities and stocks in the early 1970’s as a hobby. He was moving up the ranks as an executive at General Motors. Bill retired from GM in 2001 to become his own boss. Poulos and his son, Greg, co-founded Profits Run, Inc., a financial publishing company. The company teaches how to make smarter investments with little risk. The company has assisted more than 150,000 people across the world with its programs, such as Real Wealth Alert, 20/30 Wealth Trader, Premium Income Alert, and Rapid Income Engine, Automatic Income Engine, and Earnings Profit Alert. Bill and his high school sweetheart, Karen, were married in 1969. Today, they live in Michigan, where Profits Run is located. Below, Bill shares the latest commodities update.
GOLD
This week has been another good week for gold prices. The price opened on Monday at $1,900 per oz and moved up to high of $1,980 on Friday before settling back to around $1,970. As the Fed continues with loose monetary policy by printing money hand over fist, continuing to push the value of the dollar down which has been very good for Gold prices. There looks to be significant resistance at the $2,000 per oz level, so we will need to see if over the next couple of weeks gold can move above and close higher than that level. We see some profit taking after the recent runup however with support back around $1800. Many investors are looking to buy on the dips as the loose monetary policies are not going away any time soon
SILVER
Silver will close higher this week; however, the trading has seen some wild moves up and down. The open at 22.76 per oz. and traded between $22.50 and $26 before pulling back $23.50. In late trading on Friday the prices have moved above $24, so a solid gain on the week. Silver has clearly benefited from Gold’s dramatic runup as the “poor man’s gold” for the month of July prices have moved up from $18 to $24 a significant gain for the month. The volatility this week can be attributed to the uncertainty of the economy opening back up due to the recent outbreaks in the Coronavirus around the county. If the economy continues to rebound, industrial demand for silver will continue to increase and if the Fed continues loose monetary policies, precious metals will also do better, including silver. So many investors are still bullish on Silver but looking for good buying opportunities when prices pull back.
OIL
Oil prices have moved down over the week with prices opening at $41.24 on Monday and currently trading at just above $40 in late Friday trading to finish the week lower. The concerns for prices soon are centered around the economic demand remaining steady and OPEC increasing production as the voluntary cuts expire and supplies increase. So much of the price action in the near future is going to be based on the actual demand coming out of the economy as the county reopens after the Covid-19 shutdowns come to an end or continue into the fall depending how the virus progresses.