Gold price moves lower while oil price gains, and wheat prices struggle to breakout of tight range
Gold has seen fresh selling this morning, while oil prices are holding on to Friday’s gains. Wheat prices remain unable to breakout of their ongoing narrow range.
Gold comes under fresh pressure
The price lurched lower on Monday morning, falling back towards Friday’s low.
A rising dollar and recovering bond yields has put pressure on gold prices once again, and a new test of the 50-day simple moving average (SMA) may also occur. Below this comes the December low around $1975.
A recovery above $2050 would bolster the bullish view and suggest another attempt to move above the late December high at $2090 might be in the offing.
WTI still in short-term bullish move
Oil prices continue to gain, holding on to Friday’s rise and keeping a bearish view in check for the time being.
Since November the price has encountered lower highs around $79 and then $76, so a more sustained move to the upside needs to break above these levels.
Given the progression of lower highs and the downtrend from the September highs, the potential for a fresh turn lower remains elevated. In the short-term, a close back below $72 might suggest that a fresh move down has begun.
Wheat rally stalls below 200-day moving average
Wheat prices rose sharply from the end of November, but since then gains have stalled.
The 200-day SMA continues to provide resistance, with the 640 area also holding back any further gains. Meanwhile, losses have found support around the 100-day SMA, as we saw on Thursday last week.
For the moment this narrow range continues to limit major moves, with a close above 640 or below 600 needed to confirm a breakout.
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