Natural Gas Gains Some Ground After EIA Report

Key Insights

• Natural gas attempts to rebound after the release of the EIA report. 
• WTI oil pulls back as traders take some profits off the table after the recent rally. 
• Gold moves higher, supported by a weaker dollar and lower yields. 

Natural Gas Tries To Settle Back Above The $9.35 Level

Natural gas prices managed to get above the $9.35 level after EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 60 Bcf from the previous week, mostly in line with the analyst consensus of 58 Bcf.

In Europe, natural gas prices are testing new highs as the major energy crisis continues to develop. As Freeport LNG will not operate until late November, the events in Europe do not have a direct impact on the U.S. markets. However, rising global LNG prices may provide material psychological support to U.S. natural gas markets.

WTI Oil Pulls Back After Recent Rally

WTI oil pulls back as traders take some profits off the table after the recent rebound. Traders are waiting for more news about the Iran nuclear deal, which will remain the key catalyst for oil markets in the upcoming days.

Oil traders will also monitor comments from Jackson Hole. In case the Fed speakers are too hawkish, oil may find itself under pressure as high-interest rates will lead to slower economic growth.

Currently, WTI oil is trying to settle back below the $95 level. In case this attempt is successful, WTI oil may gain additional downside momentum and head towards the support at the $93 level.

Gold Gains Ground As Dollar Pulls Back

Gold is moving higher as the U.S. dollar is losing ground against a broad basket of currencies. Treasury yields are declining, which serves as an additional positive catalyst for gold markets.

Gold has recently made an attempt to settle above the 20-day EMA near $1,760. If gold manages to settle above this level, it will head towards the resistance at the 50-day EMA at $1,775. A move above the 50-day EMA will open the way to the test of the resistance at $1,800.

On the support side, a move below the $1,750 level will push gold towards the support at $1,730. If gold declines below $1,730, it will head towards the next support at $1,715.

Meanwhile, palladium is up by more than 6% as it continues to rebound after the recent pullback. Silver has recently managed to get back above the $19.00 level, but it remains to be seen whether it will be able to develop sustainable upside momentum in case the U.S. dollar stays near current levels.

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