Silver, wheat prices rally but oil price drops
Brent crude oil price drops on demand worries
The announcement that top oil producer Saudi Arabia was dropping its crude oil price target in preparation for increased production and a thawing of relations between rival factions in Libya which may restore exports, have led to an over 4% drop in the price of Brent crude oil.
Below Thursday’s 70.32 low on the front month futures contract lies the 68.53 current September low.
Resistance remains to be seen between the 5 and 21 August lows at 74.97 to 75.24.
Spot silver price rallies to four-month high
The spot silver price’s over 3% rally from Friday’s close has taken it to $32.28 per troy ounce, a level last traded in May. Further up lies the $32.51 May peak, a rise above which could engage the November 2012 high at $34.40.
Friday’s high at $31.43 and the accelerated uptrend line at $31.22 should hold any potential minor corrective move lower.
US wheat prices retest technical resistance
US wheat futures prices revisit the psychological 600.00 mark which, together with the mid-September high at 602.00, may act as resistance. If overcome, the 12 June low at 623.50 would be eyed.
Minor support is seen along the 200-day simple moving average (SMA) at 591.00 and at Wednesday’s 580.00 low.