Weekly Commodity Update: Gold and Silver Weaken While Oil Hit New Annual Highs
Gold opened the week at a $1908.20 at the multi month high and then has struggled this week on talk that the FED would be starting to taper the economic stimulus, thus raising interest rates and weakening precious metals, especially Gold. This continued through Friday morning before The Non-Farm Payroll numbers were released. The price on Friday morning dropped back to $1860 support. This severe weekly drop back to previous support was short-lived on Friday as the NFP numbers came in weaker than expected and fears abated somewhat about the FED near-term taper plans, pushing the price of Gold back up to $1890. While this is good news for Gold the price is still lower for the week and below the critical $1900 level. Investors will be looking for prices to break through the $1900 resistance level next week. The market is looking for additional hints out of the FED for the direction of Gold.
Silver, like gold moved lower this week on fears that the FED will taper the stimulus faster than expected based on good economic activity. Silver opened the week at $27.88 and then moved down throughout the week. However, with the Non-Farm Payroll miss on Friday, prices rebounded to close the negative gap but are still trading slightly lower than the weekly open of $27.88. Silver is trading at $27.75 in late Friday trading just a bit below the weekly open. Silver is still on a strong footing as the industrial demand for Silver is only going to increase over the course of the post pandemic recovery.
U.S Crude oil has had a very good week opening at $66.60 per barrel and moving higher to a weekly high on Friday of $69.73. This is back to a high not seen since late 2019. This recovery is being attributed mainly to the increasing demand in the post-pandemic recovery and the supply discipline of the oil producing countries known as OPEC+ to keep supplies controlled throughout the recovery. This has kept the prices moving higher as demand has picked up moving into the summer. One of the key price levels to watch will be if the price can hold above $68 level, which is now the current positive support level. If so, there is a good change that there will continue to be positive momentum pushing the price up to and above the $70 level.
Bill Poulos is a financial educator, former General Motors executive and published author. When he retired in 2001, Poulos and his son Greg founded a financial publishing company, Profits Run, Inc . Profits Run shows beginners how to invest wisely with minimal risk. The company educates investors through various wealth management publications. Automatic Income Engine, Rapid Income Engine, and Premium Income Alert are some of the products implemented by Profits Run to help investors trade smarter with minimal risk. Poulos contributes to a variety of online news sources, providing information on the stock market. Bill married his high school sweetheart, Karen, in 1969. They live in Michigan, where Profits Run is located.