2019 is coming a close, and now as we turn towards next year, I present to you a list of 10 stock market predictions for 2020.
As I did last year, I will start with number 10 and work our way up to number 1 over the final month of 2019. Enjoy!
Prediction 5: Oil, Copper, and Gold Will Soar in 2020
With global growth returning, the U.S. economy surging to a 3% growth rate, U.S. rates on the rise, the U.S. dollar sinking, and the return of inflation, commodities and materials will soar.
There is no doubting that a weak dollar and global growth can help to push commodities higher. Three commodities that may benefit are Oil, Copper, and Gold.
Oil
The chart below shows the relationship between the trade-weighted US dollar index and the price of WTI Crude oil. During the periods of dollar strength, oil prices were depressed, while during periods of weakness, oil prices soared.
The technical chart shows that the price of oil is very close to breaking out should it rise above resistance at $61.70. It could lead to the price increasing to around $67. That is where oil will meet a long-term downtrend that started in 2014. That will be the moment of truth, break above that downtrend, and oil has much further to rise, perhaps back to price not seen since 2014. If not, then oil will continue its secular decline.
Copper
Copper prices are also very close to breaking out and should the price rise above $2.81; it could move higher towards $3.00
Meanwhile, gold prices are breaking out of a pennant pattern, and it suggests that the metal takes on a resistance level at $1,556. However, it could be a more significant year for gold than that. Should gold rise above resistance, it could go on to soar to $1,700.
