Gold Pulled Back Below The $1800 Level

Key Insights

• Gold is losing ground as traders worry about a hawkish Fed. 
• Natural gas moved lower after EIA report.
• WTI oil declined towards the $78 level amid a broad pullback in commodity markets.

WTI Oil Faced Resistance Near The $80 Level

WTI oil pulled back towards $78 after an unsuccessful attempt to settle above the $80 level as traders took profits after the recent upside move.

The broad pullback in commodity markets has also hurt traders’ mood. It looks that market participants have already started to cut their risks ahead of Christmas when many traders will be away from their desks for a vacation.

Natural Gas Pulls Back After Bearish EIA Report

Natural gas moved to new lows near the $5.20 level after the release of the EIA Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by 87 Bcf from the previous week, compared to analyst consensus of -93 Bcf.

At current levels, stocks are 22 Bcf above the five-year average for this time of the year. While the current demand for natural gas is high due to cold weather, traders remain focused on weather forecasts for the end of the year, which are bearish for natural gas markets. A move below $5.20 will push natural gas towards the support level at $4.90.

Gold Tests Support At $1800

Gold declined below the $1800 level as the better-than-expected GDP report from the U.S. served as a bearish catalyst.

The strength of the U.S. economy is bearish for gold and other precious metals as it boosts chances for a more hawkish Fed.

In case gold settles below the $1800 level, it will head towards the support at the 20 EMA at $1785. A move below the 20 EMA will push gold towards the next support at $1775. In case gold declines below this level, it will move towards the support level at $1765.

On the upside, gold needs to settle back above $1800 to have a chance to gain upside momentum in the near term. The next resistance level for gold is located at $1815. A successful test of this level will open the way to the test of the resistance at $1830.

Other precious metals are also moving lower in today’s trading session. Silver declined towards the $23.50 level. Platinum made an attempt to settle below the 50 EMA at $990. Palladium tried to climb above the $1700 level but lost momentum and pulled back below $1685.

Copper Failed To Settle Above $3.80

Copper pulled back towards the 20 EMA near $3.78 as traders focused on the general dynamics of commodity markets. At this point, the hopes about strong demand from China are offset by worries about demand in developed countries.

For a look at all of today’s economic events, check out our economic calendar.