Gold Rebounds As Demand For Safe-Haven Assets Grows

Key Insights

• Gold moved higher after the disappointing U.S. PMI data. 
• WTI oil remains under pressure as traders focus on recession risks. 
• Natural gas retreats as traders expect warmer weather at the end of the year. 

Gold Settled Back Above $1785

Gold  is currently trying to settle above the $1790 level as demand for safe-haven assets increases after the disappointing PMI data from the U.S.

Gold managed to settle back above $1785 and is trying to get to the test of the $1800 level. A move above $1800 will push gold towards the next resistance at $1815. In case gold gets above this level, it will move towards the resistance at $1830.

On the support side, a move below $1785 will open the way to the test of the support at $1775. If gold declines below this level, it will head towards the next support at $1765. A move below the support at $1765 will push gold towards the support level at $1750.

Meanwhile, silver managed to get back above $23.00 after an unsuccessful attempt to settle below $22.50. Platinum pulled back towards the $1000 level, while palladium declined to yearly lows near $1700.

WTI Oil Retreats Amid Recession Worries

Weak PMI data has also put material pressure on the oil markets. WTI oil made an attempt to settle below the support at $73.65 but lost momentum and rebounded towards the $75.00 level.

There are no supply disruptions after the introduction of the Russian oil price cap mechanism, which is bearish for oil markets. In addition, recession worries put significant pressure on market sentiment. The reopening of China’s economy has failed to provide enough support to oil markets in recent trading sessions.

Natural Gas Declines As Weather Forecasts Change

Natural gas is down by 6% in today’s trading session as traders focus on the recent changes in weather forecasts.

The current demand for natural gas is high, but the weather may get warmer at the end of the year. From a big picture point of view, trading stays choppy, and the market is mostly stuck between the support at $6.35 and the $7.00 level.

Copper Is Mostly Flat Ahead Of The Weekend

Copper moved back towards the 20 EMA at $3.77 after an unsuccessful attempt to settle below the $3.75 level. Next week, copper traders will likely stay focused on the developments in China, which is trying to reopen after several years of strict zero-COVID policy.

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