Brent crude oil price drops further as silver, US wheat prices also soften
Brent crude oil price drops further amid expected restrained Israeli response to Iran’s missile attack as silver, US wheat prices soften amid strengthening US dollar.
Brent crude oil price weighs on technical support
The Brent crude oil price’s decline accelerated as Israel states that it will listen to wishes by the US government of showing restrain in its response to Iran’s missile attack on its soil.
It is the second time since last week that the front month Brent crude oil futures contract probes its breached July-to-October downtrend line which last week acted as support and may do so again on Tuesday. If so, a minor bounce to the 55-day simple moving average (SMA) at 76.00 may be witnessed. First though, the 74.97-to-75.22 resistance area would need to be overcome, though.
Below Tuesday’s 74.11 intraday low lies the 23 September low at 72.53 which may act as a magnet in case of the former level giving way.
Spot silver price resumes descent
The early October spot silver price’s over 8% fall from last week’s $32.96 per troy ounce near 12-year high to last week’s $30.12 low has been followed by a recovery rally to Friday’s high at $31.63 from which it is currently dropping once more. A potential downside target zone is seen between the $30.19 late August high and the $30.12 current October low. These levels will remain in sight while Friday’s high at $31.63 caps.
US wheat price comes further off near four month high
Having come off their near four month high at 626, US wheat futures prices have so far slid to the 200-day SMA at 590. It may withstand short-term downside pressure. If not, a more significant descent towards the late September low at 583 may be on the cards.
The 600-to-602 zone should once again act as resistance. While no bullish reversal takes the wheat price to above last week’s 622 high, further downside is expected to be seen, now that a fall though the August-to-October uptrend line has occurred.
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