WTI stalls, gold slips on stronger greenback while wheat prices surge
Outlook on WTI, gold and wheat ahead Jerome Powell’s US senate banking committee testimony.
WTI hugs April-to-June downtrend line
WTI’s recovery from its current June low at $67.54 low has been struggling around the April-to-June downtrend line at $71.06 for the past four days as traders re-assess the global economy’s growth prospects and future oil demand. Federal Reserve (Fed) chair Jerome Powell’s speech to the US banking committee today and Thursday might give investors further clues as to future US monetary policy. For WTI to resume its ascent, Tuesday’s high at $72.36 will need to be overcome in which case the 10 May high and 55-day simple moving average (SMA) at $73.82 to $73.77 will be in focus. Further up sits key resistance at the $73.89 to $74.70 May and June peaks. Upside pressure should be maintained while Tuesday’s low at $69.78 underpins. Were it to give way, the mid-May low at $69.39 would be back in the picture.
Gold slips on stronger US dollar
Gold is once again being pushed down by a recovering US dollar and approaches last week’s $1,925 per troy-ounce three-month low. If slipped through, the late January low at $1,901 would be targeted. Below it lie the 9 February high and 15 March low at $1,891 to $1,886. Downside pressure should be maintained while the price of the precious metal stays below its May-to-June downtrend line at $1,957. Only a currently unexpected bullish reversal and rise above last Friday’s high at $1,968 would void the now short-term bearish technical view.
Chicago Wheat spikes to major resistance
Chicago Wheat’s rally to a two-month high occurred in line with corn and soybean futures surging on worries about Midwestern dryness. All three commodities saw a flurry of buying last week as traders positioned themselves ahead of the three-day Juneteenth weekend. Since then, the wheat price continues to rally but at a slower pace as it hits key resistance between $7.18 to $7.30. It consists of the December and January lows and March and April highs and is likely to thwart the recent up surge. If not, the 200-day single moving average (SMA) at $7.53 would be next in line. Potential slips may find support around the minor psychological $7.00 mark.
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