Natural Gas Rallies As Traders Bet On Colder Weather

Key Insights

• Natural gas prices are up by more than 10% as traders expect that demand would soon increase. 
• WTI oil settled above the $93 level as traders have started to prepare to the Russian oil price cap, which would be imposed in early December. 
• Copper markets pulled back after the strong rally. 

Natural Gas Moves Above The $7.00 Level At The Start Of The Week

Natural gas prices rallied above the $7.00 level as traders bet that demand would increase due to colder weather.

Currently, natural gas is trying to settle above the $7.20 level. In case this attempt is successful, natural gas will move towards the next resistance level at $7.55. A successful test of this level will push natural gas towards the resistance at $7.75.

On the support side, the nearest support level for natural gas is located at $6.90. If natural gas declines below this level, it will head towards the next support at the 50 EMA at $6.75. A successful test of the support at the 50 EMA will open the way to the test of the support at $6.40.

WTI Oil Gains Ground As Traders Focus On Supply Shortage

WTI oil has recently moved above the $93 level, and it looks that traders have started to prepare for the Russian oil price cap, which should be implemented in early December.

While China has not officially announced any material changes in its coronavirus policy over the weekend, traders hope that the country will soon relax its zero-COVID approach. These hopes provide additional support to oil markets.

Gold Tests Resistance At The 50 EMA As Dollar Pulls Back

Gold continues its attempts to settle above the 50 EMA at $1680 despite higher Treasury yields. The pullback in the U.S. dollar provided some support to gold and other precious metals during today’s trading session.

Silver has recently made an attempt to settle above the $21.00 level. A move above this level will push silver towards the resistance at multi-month highs at $21.25.

Meanwhile, platinum continued to rebound and moved towards the $990 level, while palladium tested resistance at $1900.

Copper Retreats As Traders Take Profits Off The Table

Copper pulled back after the strong rally and moved below the $3.60 level. Not surprisingly, traders rushed to take some profits off the table as China has not relaxed its anti-coronavirus policy.

In order to continue its rebound, copper must settle back in the $3.60 – $3.70 range. It remains to be seen whether copper will enjoy enough support to settle inside this range if China does not signal a shift in its coronavirus approach in the upcoming days.

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