Silver Rallies 4.5% Amid Strong Demand For Precious Metals

Key Insights

• Precious metals enjoy strong support after the surprising decision of the BoJ. 
• Natural gas remains under strong pressure as forecasts predict warm weather at the end of the year. 
• WTI oil pulled back towards the $75 level. 

Silver Tests Resistance At $24.10

Silver moved towards the $24.00 level amid a broad rally in precious metals markets. It looks that this rally was triggered by the surprising BoJ decision, which highlighted inflation risks.

Currently, silver is trying to settle above the resistance at $24.10. In case this attempt is successful, silver will move towards the next resistance level, which is located at $24.40. A move above this level will open the way to the test of the resistance at $24.65.

On the support side, the nearest support level for silver is located at $23.70. If silver declines below this level, it will move towards the next support at $23.50. A successful test of the support at $23.50 will push silver towards the support level at $23.25.

Meanwhile, gold is testing the resistance level at $1815. A move above this level will push gold towards the resistance at multi-month highs at $1830. Platinum settled back above the $1000 level, while palladium rebounded towards $1700.

WTI Oil Settled Near The $75 Level

WTI oil pulled back towards the $75 level after an unsuccessful attempt to settle above the resistance at $76.30.

Oil traders remain worried that the slowdown of the world economy will hurt demand for oil.

At the same time, traders hope that the gradual reopening of China after several years of strict coronavirus-related measures will provide support to oil markets. As a result, oil prices are trying to stabilize near the $75 level.

Natural Gas Retreats As Traders Bet On Warmer Weather

The strong sell-off in natural gas markets continued today. Currently, natural gas is trying to settle below the support level at $5.35. If this attempt is successful, natural gas will move towards the next material support level at $4.90.

The weather forecast for the final days of the year remains the key problem for natural gas bulls, as weak natural gas demand is expected between December 27 and January 3.

Copper Tries To Get Above $3.80

Copper has recently made another attempt to settle above the $3.80 level. This attempt was not successful, but copper managed to settle near $3.80. In the near term, copper traders will wait for additional catalysts.

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