Good day! The week got off to a slow start on Monday, but last week's free-falling commodities were once again the highlight of the session. Albeit this time the mood was not as grim. Gold, silver, and oil all saw their prices recover last week's losses to some degree as they continued to react to exhaustion and support I wrote about in Friday's morning column.
Dow Jones Industrial Average (Figure 1)
The recovery was trivial compared to the staggering decline these commodities experienced last week, but it definitely helped take the edge off the pain for the bulls. Silver had been the hardest-hit last week with a loss of 27.39% despite pulling off the lows on Friday. The loss was reduced to 23.63% when silver prices settled on Monday afternoon. Gold had been down 4.16% so far this month when Friday's session wrapped, but it trimmed its losses to -3.12% and settled over $1,500 at $1,507.90 an ounce on Monday. Crude oil also broke back above a highly-watched price point. Last week it had fallen under $100 a barrel, but ended the session at $102.55 on Monday, bringing its month-to-date losses from 14.7% to 9.99%.
Although volume was lighter on Monday, these commodities will remain in focus in the weeks ahead, but continue to expect a more mild recovery when compared to last week's drop. Typically even a decent recovery in price with sharp intraday upside moves will still be broken by longer periods of congestion than experienced during the period of sharp selling.