Gold and Brent prices slightly lower while lumber drops to nine-month lows
Gold outlook points to further range trading while Brent crude oil pauses its ascent and lumber drops to nine-month lows.
Gold continues to oscillate around 200-day SMA
The gold price remains between a rock and a hard place whilst range trading around the 200-day simple moving average (SMA) at $1,842 and remaining below its $1,874 early June high but above its $1,829 early June low amid a stronger US dollar, firmer US treasury yields and weaker global equity indices.
Further sideways trading around the 200-day SMA is likely to ensue with last week’s low at $1,829 perhaps being revisited. If slipped through, the 18 May low at $1,807 would be targeted, below which the May trough can be spotted at $1,787.
Minor resistance remains to be seen between this week’s and the late May highs at $1,859 to $1,869 and minor support at Tuesday and Thursday’s lows at $1.841 to $1,838.
Brent comes off its recent highs for second day
The price of Brent crude oil is taking a breather below this week’s $123.52 three-month high as China is looking to reimpose lockdowns in half of Shanghai’s districts, signalling the return of concerns about possible supply bottlenecks and economic growth.
Brent prices have so far revisited their May peak at $120.62, a slip through which would engage the late March high at $120.48 as well as the minor psychological $120 mark. Further down this week’s low can be found at $117.89. While $117.89 underpins, the uptrend remains intact, however.
An advance above the current June high at $123.52 would push the $125 zone to the fore. Above it lie the minor psychological $130 mark and the March peak at $131.51.
Lumber prices trade at nine-month lows
The price of Lumber continues to slide amid soaring inflation and US mortgage rate rises which negatively affect US home builders and the demand for the commodity.
The sharp drop in the price of lumber by nearly 57% from its March one-year high at $1,340 per thousand-feet boards has so far taken it through its November low at $592, close to its mid-September low at $571, as production has been ramped up in some areas of the US.
Should lumber prices not find support around the $571 level, the July and August 2021 lows at $505 to $497 would be eyed next.
Immediate downside pressure should be maintained while the price remains below its last reaction high, that is to say a candle which has a higher high than that to its left and right as was the case at Monday’s $647 high.
Slightly further up the four-month downtrend line can be spotted at $669.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to volatility on commodity markets
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.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
