Gold: Our Commodity Trader model signaled a buy signal for Gold on the July 25th. The precious metal is up +1.94% since then. 1,570-1,600 range continues to be a key support level. We expect a rally in Gold until 1,700 in the coming weeks (maybe days as this week is a critical Central Banks-week). If more quantitative easing or asset purchase programs are announced, this will positively affect Gold prices upwards. 1,700 is a key level for a long-term bull trend, which would confirm further upside.
Crude Oil: Our Commodity Trader model signaled a buy signal for Crude Oil on July 30th (today). Crude oil has been establishing a small triangle formation recently. A relative underperformer of the generic recent commodity rally, crude may target $100 in the coming days. Both geographical tensions in the Middle East and Central Banks’ potential moves for further easing will accelerate this move. $87 is a key support (or stop for aggressive traders).
Wheat: Our Commodity Trader model signaled a sell signal for Wheat on July 19th. Due to drought weather conditions, the recent rally in grains’ prices has been very significant which has very positively affected wheat. However, wheat in general is more resistant to dry weather conditions than, for example, corn in nature. This factor was already reflected in the price short after the rally with a little pull-back. We expect a further decline in wheat prices in the coming days, targeting $840-$860 level as the first step. For all-grain-traders/funds our recommendation is to stay long in soybean.
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