Gold and Silver weekly Update – w/e 26th April 2019

Gold rose $11 last week from $1275 to $1286 having hit a high of $1,288 and a low of $1,267.  In sterling terms gold finished the week at £995 that’s up £14, and in Euros it closed at 1,153 Euros that’s up 19 euros.

Silver rose 13 cents from $14.96 to $15.09 having hit a high of $15.09 and a low of $14.76. In sterling terms, it closed at £11.68, that’s up 17 pence and in Euros it closed at 13.54 euros, that’s up 0.24 euros.

The Gold to Silver Ratio remained unchanged at 85.2:1

The Dow Jones closed on Friday at 26,543 up 81 points on the day and down 16 points on the week, and the NASDAQ closed at 8,146 up 27 points on the day and up 148 points on the week, and the S&P 500 closed at 2939 up 13 points on the day and up 34 points on the week.

Brent Crude rose 18 cents from $71.97 to $72.15 and US Light Crude fell 70 cents from $64 to $63.30

The dollar index stands at 98 that’s up 0.63 on the week reversing the previous week’s fall.

Gold markets fell during the early part of last week and then began a gradual rise on Wednesday and gained reasonable ground on Friday, closing up $10 on the week. Technical analysts are cautious predicting once again that the price could move in either direction and most suggest caution. If we see a rise above $1292 then that would be bullish, however the gains made on Friday could easily be given back on Monday. Although prices rose last week, we noticed that lasts week’s low in both gold and silver were lower than the previous week’s low – something to take particular notice of.

Silver followed gold pattern, dropping dramatically on Tuesday but again recovered later in the week. Technical analysis suggest that a falling wedge has been created and any break upwards of the wedge will prove positive. Closing above $15 indeed renewed some traders confidence however a podcast we shall be releasing tomorrow will paint a very interesting picture with regards to one professional’s view as to where these markets are heading in the months ahead.

So, what do we have on the economic calendar for next week:

• Monday – Personal Income, Consumer Spending and Core Inflation for March
• Tuesday – Consumer Confidence Index for April
• Wednesday – Markit and ISM Manufacturing PMI for April plus the FOMC Statement on Interest rates and Jerome Powell’s Statement shortly afterwards.
• Thursday – Productivity and Unit labour Costs for Q1
• Friday – Non-Farm Payrolls plus Average earnings plus Markit Services PMI for April

So, we have an exhaustive week of reports which should generate quite a lot of interest in stocks as well as commodities and we shall see which of these investment choices benefits the most. Of course, it’s all about the dollar and that is again likely to have the greater influence on precious metal prices dependent on the week’s reports.

Interestingly last Friday GDP figures for Q1 were reported at 3.2% compared with an expectation of 2.3% and if these positive figures continue this coming week, we may indeed see commodities under pressure as the dollar is likely to gain further, though to be fair, it is already standing at a lofty 98.

 

Now tomorrow we have a treat for our viewers and subscribers in that we shall be interviewing Mr Erik Townsend a former teenage computer protégé and now a retired entrepreneur turned hedge fund manager and my word has he got some revelatory comments on the price of gold and silver.

You really must tune in for that interview – which will then be continued further as we shall be discussing additional issues within the Inner sanctum so a treat for all of our non-members and members alike. But be warned, do not listen if you fear hearing things you do not wish to hear – that is all we can say right now.