Gold Tests Support At $1785 As Treasury Yields Rebound

Key Insights

• Gold markets are under pressure as Treasury yields move higher after the release of the U.S. Non Farm Payrolls data. 
• WTI oil is mostly flat as traders wait for news on Russian oil price cap and OPEC+ production decision. 
• Natural gas declines as U.S. Senate passed a bill to avert the rail strike.

Gold Retreats As Traders Focus On Rising Yields

Gold moved towards the $1785 level as Treasury yields rallied after the release of the better-than-expected U.S. Non Farm Payrolls report.

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

On the upside, the nearest resistance level for gold is located at $1800. If gold gets above this level, it will move towards the next resistance at $1815. A successful test of this level will open the way to the test of the resistance at $1830.

Meanwhile, platinum and palladium are down by 3% in today’s trading session. Platinum declined towards $1025, while palladium settled near the $1870 level. Interestingly, silver quickly rebounded after the sell-off which was caused by U.S. jobs data, and is currently trading near $22.80.

WTI Oil Is Flat As Traders Wait For Catalysts

WTI oil is trading near $81.50 as traders wait for the news on Russian oil price cap, OPEC+ production decision, and potential changes to China’s zero-COVID policy.

Oil traders have mostly ignored the volatility in currency and debt markets after the release of the U.S. jobs data. It remains to be seen whether they will be ready for big moves ahead of the weekend which could bring important news.

Natural Gas Declines As Pullback Continues

Natural gas prices declined towards the $6.60 level as the rail strike risk disappeared. The U.S. Senate passed the bill to avoid a rail strike, and there are no other potential positive catalysts in the near term.

The weather forecast remains unfavorable for high natural gas consumption, and the recent EIA report showed a smaller-than-expected storage draw.

Copper Remains Stuck Near The $3.80 Level

Copper found support near the $3.75 level and quickly rebounded towards the $3.80 level as traders bet on rising demand in China. The next week may be eventful for copper markets as China may tweak its strict zero-COVID policy.

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