Natural Gas Tests Support At $6.00

Key Insights

• Natural gas markets decline as traders expect that demand will not increase in the near term. 
• WTI oil pulled back towards $85.50 as China decided to delay the release of the GDP data. 
• Gold rebounded as U.S. dollar declined against a broad basket of currencies. 

Natural Gas Is Under Strong Pressure

Natural gas retreated towards the $6.00 level as traders prepared for weaker demand. The weather forecast remains unfavorable for high natural gas consumption, and traders believe that natural gas stocks will continue to build at a robust pace.

Currently, natural gas is trying to settle below the $6.00 level. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum. In case natural gas settles below $6.00, it will move towards the next support level at $5.70. A successful test of this level will push natural gas towards the support at $5.35.

On the upside, a move above $6.00 will push natural gas towards the resistance level at $6.30. If natural gas climbs back above this level, it will head towards the next resistance level at $6.55. A successful test of this level will open the way to the test of the resistance at $6.75.

WTI Oil Pulls Back Amid Worries About China’s Economy

WTI oil is trading near the $85.50 level after an unsuccessful attempt to settle above the 20 EMA at $86.40.

China delayed the release of the third-quarter GDP report, and traders are worried that disappointing numbers are the reason behind the delay.

China’s demand is extremely important for oil markets, so it’s not surprising to see that oil traders ignored the global market rebound and pushed WTI oil back below the $86 level.

Gold Rebounds After Sell-Off

Gold gained upside momentum as the U.S. dollar pulled back at the start of the week. Treasury yields have also moved lower, providing additional support to safe-haven assets. Currently, gold is trying to settle back above the resistance at $1660. In case this attempt is successful, gold will move towards the next resistance level near the 20 EMA at $1675.

Meanwhile, silver moved back above the $18.50 level. Platinum settled near $920, while palladium remained under pressure and continued to trade below the $2000 level.

Copper Traders Wait For Catalysts

Copper markets have not reacted to the global market rebound, and traders continued to wait for specific catalysts.

As a result, copper remained stuck in the tight $3.40 – $3.45 range. A move below this range may push copper towards September lows near the $3.25 level.

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