Natural Gas Rebounds Towards $5.50

Key Insights

• Natural gas markets stay strong as traders start to prepare for the upcoming winter season. 
• WTI oil remains stuck in a wide trading range. 
• Gold moved towards the $1660 level as Treasury yields pulled back from their recent highs. 

Natural Gas Continues To Rebound

Natural gas has recently made an attempt to settle above the $5.50 level as the rebound continued.

While the weather forecast remains unfavorable for high natural gas consumption, it looks that traders have started to prepare for the winter. In addition, Freeport LNG should restart operations in late November, which will have a material impact on domestic markets.

In case natural gas settles above the $5.50 level, it will move towards the next resistance level at $5.70.

WTI Oil Remains Range-Bound

WTI Oil has recently made another attempt to settle above the $86 level but lost momentum and pulled back towards $85.

In case WTI oil settles back below the $85 level, it will head towards the low end of the current trading range at $83.50. A successful test of this level will push WTI oil towards the support at $82.

On the upside, WTI oil needs to settle above the resistance near the $86 level to have a chance to gain upside momentum. The next resistance level is located at the 50 EMA at $87.70. A move above the 50 EMA will open the way to the test of the resistance at $88.50.

Gold Rebounds As Dollar Pulls Back

Gold moved back towards the resistance level at $1660 as the U.S. dollar found itself under significant pressure against a broad basket of currencies. The strong pullback in Treasury yields has also provided material support to gold and silver, which tested the resistance at $19.35.

Meanwhile, platinum and palladium remained under pressure amid recession worries. Platinum is trading near the $930 level, while palladium has recently made attempt to settle below $1900. Both metals are sensitive to industrial demand.

Copper Declines Amid Recession Worries

Recession worries have also put pressure on copper markets, and copper prices made an attempt to settle below the $3.40 level.

As in the cases of platinum and palladium, weaker dollar and lower Treasury yields did not provide support to copper.

From a big picture point of view, copper markets remain stuck in a range, and they will need significant catalysts to develop sustainable momentum in the upcoming weeks.

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