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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
