Gold price takes hit while oil price surges and wheat price grapples with resistance
Gold price experiences pullback as oil price surges amid fears of another Middle East flare up between Iran and Israel while the US wheat price grapples with technical resistance.
Gold price comes off record high
The spot gold price hit a new record high at $2,790.00 per troy ounce, close to the psychological $2,800.00 mark, before dropping to $2,732.00 amid a pullback as some traders cashed in their profits ahead of Friday’s US non-farm payrolls (NFPs) release and next week’s US presidential election.
Below $2,732.00 lies the 23 October low at $2,709.00 As long as this level underpins, the medium-term uptrend will stay intact.
Resistance above the 23 October high at $2,758.00 sits at this week’s all-time high at $2,790.00.
Crude oil price on track for third straight day of gains
The recent sharp drop in the WTI front month futures crude oil price to Tuesday’s 66.62 low has been followed by a swift near 6% rally amid escalation in the Middle East. Concerns regarding a flare up between Iran and Israel and possible supply disruptions have pushed the price of oil to the 55-day simple moving average (SMA) at 71.08 with last week’s high at 72.29 representing resistance. If overcome, a bottom will have been formed with the 78.02 October peak being back in sight.
Possible slips may find support around the 24 October low at 69.74.
US wheat price revisits resistance
US wheat futures prices have bounced of Monday’s 573 low and have been testing the October downtrend channel resistance line and 200-day SMA between 586 and 589 over the past three days.
A rise above not only Wednesday’s high at 594 but also the 25 October high at 598 is needed for the bulls to regain control.
Minor support can be found between the 55-day SMA and 22 October low at 580-to-579 ahead of the October trough at 573.
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