WTI trades in 2-month high while gold price stays side-lined and corn price stabilizes
WTI trades in 2-month high on higher demand, gold price stays side-lined amid French and UK elections while corn price stabilizes above 3 ½ year low.
WTI trades at 2-month high on prospects of higher demand
The WTI crude oil front month futures price is trading at levels last seen in April, driven by prospects of higher demand during the summer driving season and pushed forward US rate cut hopes due to weaker-than-expected US manufacturing purchasing managers index (PMI) data. The American Automobile Association anticipates 5.2% annual growth in holiday travel, with car travel alone expected to rise by 4.8% from last year.
WTI front month futures now have the 84.32 late April high in their sights while the 81.75 region offers support, together with the June-to-July accelerated uptrend line at 81.66.
Gold price stays side-lined
The spot gold price continues to trade sideways below the 55-day simple moving average (SMA) at $2,34 per troy ounce and the May-to-July downtrend line at $2,345.
A fall through Monday’s low at $2,319 could lead to the May-to-June lows at $2,294-to-$2,278 being revisited. This support area is key for the medium-term trend.
Only a rise above the May-to-July downtrend line at $2,345 would put the 21 June high at $2,368 back on the cards.
Corn price hovers above 3 ½ year low
Front month corn futures prices slid to 401, a level last traded in November 2020 on ample supply. They are now trying to hold above this level and the psychological 400 mark.
Failure at 400 would likely lead to the late October 2020 low at 395 being reached.
Minor resistance can be spotted at the 409 February low.
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