Gold, oil and corn prices all drop back
Commodity prices have come under pressure, with the downtrends in oil and corn reasserting themselves.
Gold drops back below $2000
The gold price has stabilised after Wednesday’s drop and recovery, though a declining MACD may well stay the buyers’ hand for now.
Should a bigger retracement develop, then the 50-day and 100-day simple moving averages (SMAs) come back into play as possible support. Having created higher highs in February and April, and a higher low in February, the uptrend is firmly intact.
Fresh gains would target $2050 and then the 2022 peak at $2070.
WTI falls back to 100-day MA
The oil price is now filling the gap created by OPEC’s surprise decision to cut output at the end of March.
This arguably revives the bearish thesis, with the price now below the $80 mark that was the high in early March. Additional declines below the 100- and 50-day SMAs would then potentially open the way to an eventual test of the March lows at $65.
Buyers will want to see a recovery above $80 and then a move on above the 200-day SMA to help recover a more bullish view.
Corn heads lower
Two attempts in April to clear 650 have run out of momentum, and with the price now back below the 50-day SMA it looks like a move back towards 610 could be developing.
The downtrend is still in place with the failure to move back above 650, and the declining 50-day SMA points towards a continued bearish view.
A rally above 650 would then open the way to the February highs around 685.
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