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.
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