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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.

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​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.

gold chart Source: ProRealTime

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.

Brent crude oil chart Source: ProRealTime

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.

Chicago wheat chart Source: ProRealTime

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