Gold Tests Support At $1690 As Treasury Yields Move Closer To Yearly Highs

Key Insights

• Precious metals retreat after the release of strong job market reports from the U.S. 
• WTI oil gains more ground as bulls cheer OPEC+ production cuts. 
• Natural gas tests support at $6.75.

Gold Is Under Pressure Ahead Of The Weekend

Gold found itself under pressure after the U.S. reported that Unemployment Rate declined from 3.7% in August to 3.5% in September. Treasury yields have immediately moved higher after the release of job markets reports from the U.S., which put more pressure on precious metals.

Currently, gold is trying to settle below the support level at the 20 EMA at $1690. A move below this level will push gold towards the support at $1675. If gold declines below $1675, it will head towards the next support level at $1660. A successful test of this level will open the way to the test of the support at $1640.

On the upside, the nearest resistance level for gold is located at the 50 EMA at $1715. In case gold gets back above the 50 EMA, it will head towards the $1730 level. A move above $1730 will push gold towards the resistance at $1750.

Other precious metals are also moving lower. Silver declined towards $20.20, while palladium settled below the $2250 level. Platinum is trading near $930.

WTI Oil Settled Above The 50 EMA And Moved Above The $90 Level

WTI oil rallied towards the $91 level after a successful test of the resistance at the 50 EMA at $88.50.

OPEC+ decision to cut production by 2 million bpd provided significant support to oil markets. From a technical point of view, WTI oil has good chances to continue its upside move as RSI remains in the moderate territory.

In the near term, oil traders will likely stay focused on production cuts and potential actions from major oil consumers, who may try to release their strategic reserves to stop the rally in the oil markets.

Natural Gas Tries To Settle Below The Support At $6.75

Natural gas continues its attempts to settle below the $6.75 level as traders react to the recent EIA report, which indicated that working gas in storage increased by 129 Bcf from the previous week.

According to the weather forecast, demand for natural gas is expected to be moderate in the near term, so it remains to be seen whether bulls will find catalysts for a rebound ahead of the weekend.

Copper Falls As Higher Interest Rates May Hurt Demand

Copper is trying to settle below the $3.40 level as traders are worried that higher interest rates will put pressure on the world economy and hurt demand for copper.

In case copper manages to settle below the support at $3.40, it will gain additional downside momentum and move towards the next support level at $3.30.

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