Gold, Brent prices rally as London wheat consolidates below all-time high
The outlook on gold is cautiously bullish while crude oil probes resistance at $114 and London wheat pauses below its £361 all-time high.
Gold stages a minor recovery rally
Gold’s slip from its mid-April high at $1,998 has taken it all the way to yesterday’s low at $1,787 before it formed a Hammer on the daily candlestick chart and recovered towards the 200-day simple moving average (SMA) at $1,837 which is about to be reached.
Next up the early May low can be spotted at $1,851 and the April-to-May downtrend line at $1,855 which may well cap again, however.
Yesterday’s low was made right within the late December-to-January lows at $1,790 to $1,781 which unsurprisingly offered support. Failure at $1,781 would engage the December low at $1,754.
While the late April high at $1,919 caps, the recent downtrend remains intact.
Further up meanders the 55-day SMA at $1,923.
Brent crude oil flirts with $114 April high as traders eye EU ban
The price of Brent crude oil continues to be underpinned by robust global demand as traders closely watch developments around a proposed EU ban on Russian oil which would tighten global supply further.
Yesterday the European Union (EU) failed to pressure Hungary to lift its veto of a proposed oil embargo on Russia but despite this the price of Brent crude oil has risen four days in a row.
It is being pushed towards its $114.00 April peak, a rise and daily chart close above which would lead to the late March high at $120.48 being next in line.
If the price of oil were to struggle around the $114 mark, however, and slip back, the breached March-to-April downtrend line at $110.05 and also the 55-day SMA at $108.38 would be back in the frame.
For now the bulls seem to be firmly in charge, though.
London wheat prices are briefly coming off their all-time highs
Yesterday November 2022 London Wheat futures traded at their highest ever level of £361 per tonne after India announced on Saturday that it was closing its doors on wheat exports to cool local prices and ensure its supplies as a scorching heatwave curtailed output.
This comes on the back of adverse crop conditions in Europe and the US on top of the war in Ukraine and has pushed the price of London wheat up by over 50% since the Russian invasion of Ukraine.
The November 2022 contract has come off yesterday’s all-time high at £361 and closed a price gap from last week whilst remaining within its steep one-month uptrend channel.
The lower channel line at £337 is likely to act as interim support, together with the 9 May high at £333.
A rise above the £361 high seen yesterday may lead to the minor psychological 400 mark being targeted.
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