Brent crude oil price recovers while silver, cotton prices continue to slide
The Brent crude oil price is regaining most of last week’s sharp losses amid strong US employment data and expectations of future increase in demand while silver and cotton prices slump.
Brent crude oil price regains recently lost ground
Brent crude oil front month futures prices regained 6% from last week’s low which was hit at 76.74 following an over 9% drop from its late May high at 84.72 amid concerns regarding future demand and weak US economic data.
Friday’s strong US employment report so far took the Brent crude oil price to 81.98 on heightened demand expectations, a rise above which would eye the April-to-June downtrend line at 82.82 ahead of the 200-day simple moving average (SMA) at 83.74.
Potential slips should find support between the mid-January high and late February, mid- and late May lows at 80.25 to 80.88.
Silver price continues to slide
The spot silver price’s decline from its $32.51 per troy ounce May peak, in line with a $100 per troy ounce drop in the gold price due to China’s central bank no longer shoring up its gold reserves with purchases in May, is ongoing with the lower downtrend channel line, 55-day simple moving average (SMA) and February-to-June uptrend line at $28.66 to $28.38 being in focus. If reached, this area is likely to, at least in the short-term, act as support.
For a bounce back to gain traction, Monday’s high at $29.85 would need to be exceeded, as well as the late May low at $30.04.
NY cotton futures prices drop towards key support
Front month NY cotton futures prices continue to slide and are on track for their third consecutive week of falling prices whilst approaching the 70.13 October 2022 low. Between this level and the psychological 70.00 mark at least short-term support should kick in.
If not, the November 2020 low at 68.73 would represent the next downside target.
Immediate downside pressure should be maintained while Wednesday’s high at 74.82 isn’t being bettered.
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