Brent crude oil slumps, gold remains under pressure while orange juice rallies
Outlook on Brent crude oil, gold and orange juice as US dollar and yields retreat.
Brent crude oil drops to one-month low
Brent crude oil slumped by around 5%, to its lowest level in a month, as OPEC+ stuck to its output policy and maintained previously announced production cuts by the likes of Saudi Arabia and Russia. Another contributor to the slump was the EIA’s US gasoline demand report with the four-week average falling last week to 8.3 million bpd, the lowest for this time of the year since 1998.
Given the recent strong downside momentum in the oil price, the August lows at $82.31 to $81.68 per barrel may be reached in the days to come. Resistance can be seen along the 55-day simple moving average (SMA) at $87.52 and at the August high at $87.83.
Gold price has seen seven straight days of falls
Gold’s swift descent from its 20 September $1,947 per troy ounce high due to rapidly rising US yields has taken it to a seven-month low at $1,816. Slightly below this level the February and March lows can be made out at $1,810 to $1,805 and may offer interim support. Above Wednesday’s $1,830 high there is now no resistance to speak of until the 6 March high at $1,858 and Friday’s $1,880 high.
Orange juice futures trade at new all-time record highs
Front month orange juice futures are heading back up towards last week’s all-time record high at $359.46 per 15,000 Lbs., as inclement weather and the spread of citrus greening, a bacterial disease transmitted by the Asian citrus psyllid insect, continues to affect top producers Florida, Brazil and Mexico. A rise above $359.46 could push the psychological $400 mark to the fore.
Minor support can be spotted at Monday’s $348.47 high and major support along the July-to-October uptrend line at mid-August peak at $337.20 to $332.67. While the next lower late September low at $332.99 underpins, the medium-term uptrend remains intact.
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