Forecasts on the price of gold, Brent crude oil and wheat
Technical outlook on gold, Brent crude oil and Chicago wheat as traders mull impact of further sanctions on Russia.
Gold stays range bound
The price of gold continues to trade sideways while staying below Thursday’s $1,950 high as further European and US sanctions on Russia loom.
Good support can be found between the 55-day simple moving average (SMA) and the mid- to late March lows at $1,896 to $1,891 while significant resistance remains to be seen in the $1,959 to $1,974 region.
It consists of the September and November 2020, January 2021, and February 2022 highs and as such is expected to again cap, if revisited.
Brent crude oil stabilises above its four-month uptrend line
Brent crude oil’s recovery from last week’s low at $102.21, made slightly above the four-month uptrend line at $101.90, took it to yesterday’s high at $109.55 before giving back some of its daily gains. This as the threat of additional sanctions on Russia countered expectations of weaker demand following a build in US crude stockpiles and an extended lockdown in Shanghai.
A rise above yesterday’s high at $109.55 is needed, for the next higher 30 March high at $112.20 to be next in line. Further up remains to be seen the $116.48 to $120.48 resistance zone which contains the 3, 10 and 24 March highs.
While this resistance area prevents further upside, a slide back towards the uptrend line looks to be the more likely scenario. Below it the 55-day SMA can be spotted at $100.54 as well as the mid-March low at $96.61.
The price of Chicago wheat stabilises as traders mull further sanctions on Russia
Chicago wheat is seen stalling along its one-month downtrend line at $10.59 as investors assess the impact of further sanctions on Russian wheat supplies.
Yesterday the soft commodity rallied to $10.72 on news of further sanctions being imposed on Russia but since then its price has declined with Monday’s gap at $10.23 to $10.15 left to be filled. Below it sit the March and current April lows at $9.83 to $9.70 which represent support.
Were this level to give way, the 55-day SMA at $9.41 would be eyed. Much further down lie Chicago wheat’s pre-invasion levels of around $7.98 where the 200-day SMA can be seen.
Only a rally above this week’s high at $10.72 would engage the 8 March low and mid-March highs at $11.54 to $11.56.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
Speculate on commodities
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.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
