Gold Rallies Towards $1750 As Dollar Tests Multi-Week Lows

Key Insights

• Precious metals rally as dollar retreats after the release of U.S. inflation data. 
• Natural gas rebounds after the recent pullback. 
• WTI oil is range-bound amid worries about recession and China’s coronavirus policy. 

Gold Tests Resistance At $1750

Gold gained strong upside momentum and moved towards the resistance at $1750 after the release of the U.S. inflation data. Treasury yields declined, while the U.S. dollar found itself under significant pressure, which was bullish for gold and other precious metals.

If gold settles above the $1750 level, it will head towards the resistance at $1765. A successful test of this level will push gold towards the next resistance at $1775. In case gold climbs above $1775, it will move towards the $1785 level.

On the support side, a move below $1750 will push gold towards the support at $1730. A successful test of the support at $1730 will open the way to the test of the next support level at $1715.

Meanwhile, silver managed to settle above $21.50 and is trying to get closer to the $22.00 level. Platinum settled above $1050, while palladium is testing the resistance at $1950.

Natural Gas Rebounds After Sell-Off

Natural gas prices moved above the $6.00 level after the release of the EIA Weekly Natural Gas Storage report.

The report indicated that working gas in storage increased by 79 Bcf from the previous week, compared to analyst consensus of 84 Bcf. From a big picture point of view, natural gas markets are trying to stabilize after the strong pullback.

WTI Oil Found Support Near The $85 Level

WTI oil failed to gain sustainable upside momentum after the release of U.S. inflation data.

China does not rush to relax its zero-COVID policy, which is bearish for oil markets. In addition, traders remain worried about a potential global recession.

As a result, WTI oil is stuck in the $85 – $87 range. Most likely, it will need additional catalysts to get out of this trading range.

Copper Continues To Move Higher As Treasury Yields Pull Back

Copper markets managed to settle above the $3.70 level and continue to move higher. Weaker dollar and lower Treasury yields provided significant support to copper.

Currently, copper is trying to settle above $3.78. A move above this level will push copper towards the next material resistance at $3.84.

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