WTI, gold rise while Chicago wheat drops to near 3-month low
Outlook on WTI, gold and wheat as the US dollar gives back some of its recent gains.
WTI nears last week’s high
WTI is once again heading up and is about to test last week’s high at $81.73 per barrel as US crude oil inventories tumbled by 11.5 million barrels last week, far exceeding expectations of a 2.9 million barrel decline.
This, together with fears that a hurricane in the Gulf of Mexico might lead to supply disruptions, pushed the price of oil up. If last Monday’s $81.73 high were to be exceeded on a daily chart closing basis, the August peak at $84.39 would represent the next technical upside target, provided that last week’s low at $77.60 underpins. A currently unexpected fall through Wednesday’s low at $77.60 would put the $77.17 mid-July high on the map, below which meanders the 200-day simple moving average (SMA) at $75.98.
Gold rises to three-week high
Gold’s advance from its current $1,885 per troy ounce August low has so far taken it above the 55-day simple moving average (SMA) at $1,932 towards the late July low at $1,943 ahead of the minor psychological $1,950 zone. The rise in the gold price is fueled by a slip in the US dollar from its 2 ½ month high, hit last week.
Potential slips should find support along the 55-day SMA at $1,932 and below it around the mid-June low at $1,925. Provided the next lower 200-day simple moving average (SMA) at $1,914 underpins, further upside is expected to be seen in the days and weeks ahead.
Chicago Wheat prices fall to a near three-month low
Chicago Wheat’s decline from its $7.85 late July high has taken it to a near three-month low around the $6.00 mark, pressured by weaker Russian domestic and export demand amid a better outlook for the country’s as well as the US’s wheat harvest.
The May low at $5.82 represents the next technical downside target while the two-month downtrend line at $6.17 caps. Minor resistance below it sits at the $6.13mid-August low.
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