Natural Gas Moved Above $6.00 After EIA Report

Natural gas prices moved above the $6.00 level after the release of the EIA Weekly Natural Gas Storage Report, which indicated that working gas in storage increased by 52 Bcf from the previous week. Analysts expected that natural gas stocks would grow by 59 Bcf.

The previous report indicated that working gas in storage increased by 111 Bcf, so the pace of stocks’ growth is slowing down. It should be noted that natural gas moved from $4.75 to the $6 level in just four trading sessions. However, RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

WTI Oil Is Heading Towards The Key $90 Level

WTI oil continues to rebound and is trying to get above the $90 level. Traders shrugged off recession worries and focused on energy scarcity ahead of the winter season.

Recent reports indicate that Western countries continue to work on the Russian oil price cap plan. The reports showed that the price cap could be in line with the historical average of $63 – $64 per barrel. Russia has previously warned that it would not supply oil to countries that participate in the price cap scheme.

The choice of a $63 – $64 range for the price cap suggests that Western countries are worried that their plan could backfire and send oil prices well above the $100 level. The suggested price cap is not far from the recent price of Russia’s Urals oil, which is trading at a major discount to Brent due to sanctions.

Gold Stays Range-Bound Despite Stronger Dollar

Gold has settled in the range between the support at $1660 and the resistance at $1675 as the negative impact of dollar’s rebound was offset by the positive impact of lower Treasury yields. The yield of 10-year Treasuries managed to settle below the 4.00% level and moved towards 3.90%, which was bullish for precious metals.

In case gold settles above the resistance at $1675, it will move towards the next resistance level at the 50 EMA at $1690. A move above the 50 EMA will open the way to the test of the resistance at $1715.

On the support side, a successful test of the support at $1660 will push gold towards the next support level at $1640. If gold declines below this level, it will head towards the support which is located near recent lows at $1615.

Meanwhile, silver is trading near the $19.50 level after an unsuccessful attempt to settle below the 50 EMA at $19.35. Platinum moved to new highs at $980, while palladium declined towards the $1920 level.

Copper Tests Resistance At $3.55

Copper continues its attempts to settle above the $3.55 level. It should be noted that copper made an attempt to settle back below the $3.50 level, but this pullback was quickly bought. Most likely, copper markets will need additional catalysts to move into the $3.60 – $3.70 range.

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About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.

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