Weekly Commodity Update: Watching Closely

GOLD

While gold will finish higher for the week, it has traded mostly sideways trying to move higher each day and then dropping back down to close mostly flat on the day. Monday opened at $1764.55 and is trading right at $1776. With the sideways consolidation the market is very undecided and looking for more information after the Federal Reserve’s comments last week. We do have clear support and resistance levels as a result of the consolidation with support at $1760 per oz. and resistance at about $1800 per oz. The thing to watch closely is the value of the U.S dollar which has a negative correlation with Gold, so if the U.S dollar rises the price of gold will continue to fall as it has over the last couple of weeks.

SILVER

After last week’s big drop in precious metals prices including Silver, this week the price of silver looks to have found some support and has traded mostly sideways between the open of $25.77 on Monday to Friday’s trading right around $25.90. This is a tight trading range but at least it stopped the slide created from last week’s hawkish FED comments. The current trading range has support right at $25.60 and resistance about $26.00. Investors are watching for a break higher or lower outside the current trading range before committing to a near-term direction.

OIL

Oil opened the week at $71.41 and moved as high as $74.16 on Friday before settling back a bit to $74.16 in late Friday trading. This is the Fifth weekly gain in a row on strong demand as the post-pandemic demand continues to outstrip supplies. We also have this week’s agreement on the government’s infrastructure bill that will only increase demand in the economy which should continue to push the momentum for prices even higher in the near term.

Bill Poulos is a retired automotive executive, investor, and a financial educator. After retiring from General Motors in 2001, Poulos drew on his decades of trading experience to co-found Profits Run with his son Greg. A financial publishing company, Profits Run, Inc. strives to teach ordinary people smarter trading techniques with good adherence to risk management. Profits Run offers 20/30 Wealth Trader, Crypto Profit Alert, Instant Options Income, Real Wealth Alert, Premium Income Alert, Earnings Profit Alert, Premium Income Letter, Rapid Income Engine, Forex Profit Accelerator 2.0, Profits Run Coaching, and Profits Run Alliance. Profits Run is located in Michigan, where Bill lives with his wife, Karen of more than 50 years. They have three adult sons and two grandchildren.

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.