Silver Rallied Towards $23.80 As Dollar Pulled Back

Key Insights

• The weak dollar provided material support to commodity markets today. 
• Natural gas tested new lows but managed to gain some upside momentum after the release of the disappointing U.S. economic data.
• Copper moved towards the high end of the recent trading range. 

WTI Oil Gains Ground Ahead Of The Weekend

WTI oil  continues to rebound as traders focus on weaker dollar and lower Treasury yields. The better-than-expected Non Farm Payrolls report has also provided support to oil markets.

For oil traders, the key question is whether China’s recent problems on the coronavirus front will put significant pressure on the country’s demand for oil. In case China manages to solve its problems in the upcoming weeks, its economy will rebound at a robust pace as it abandoned its zero-COVID policy. This scenario will be bullish for oil markets.

Natural Gas Attempts To Rebound After Testing New Lows

Natural gas is currently trying to settle above the $3.80 level after testing new lows at $3.52.

The warm weather remains the key problem for natural gas bulls. Demand for natural gas is expected to stay low in the next 7 days, and it remains to be seen whether bulls will be able to find any upside catalysts.

Silver Rallied After Disappointing ISM Non-Manufacturing PMI Report

The weakness of the U.S. dollar and the strong pullback in Treasury yields provided significant support to precious metals.

Silver gained upside momentum after yesterday’s sell-off and managed to settle near the $23.80 level. It should be noted that silver has recently faced strong resistance in the $24.00 – $24.50 area. Most likely, silver will need additional catalysts to move above $24.50.

Gold tested resistance at multi-month highs at $1865. In case gold manages to settle above this level, it will move towards the next resistance at $1880. Platinum moved back towards the $1100 level, while palladium rebounded towards $1800.

Copper Tests The High End Of The Recent Trading Range

Copper  rebounded towards the $3.90 level as weak dollar boosted market sentiment. Currently, copper settled near the high end of the recent trading range. A successful test of the $3.90 level will open the way to the test of multi-month highs at $3.96.

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