Silver Tests New Highs As Dollar Pulls Back

Key Insights

• The strong rally in the precious metals segment continues as dollar tests new lows. 
• OPEC+ may cut production by as much as 2 million bpd. 
• Natural gas failed to settle below the support level at $6.30. 

Silver Heads Towards The Resistance Level At $21.35

Silver managed to get above the $21.00 level and is moving higher as U.S. dollar remains under strong pressure.

The recent pullback in the U.S. dollar provided strong support to precious metals and caused a huge rally in silver. Not surprisingly, today’s sell-off in the dollar continues to provide support to silver.

Silver is moving towards the resistance level at $21.35. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge. If silver settles above $21.35, it will head towards the resistance at $21.50. A move above this level will push silver towards the next resistance at $21.75.

On the support side, the previous resistance at $21.00 will serve as the first support level for silver. In case silver declines below this level, it will move towards the next support at $20.80. A successful test of this level will push silver towards the support at $20.50.

Meanwhile, gold managed to get to the test of the $1730 level. Platinum moved towards $950, while palladium settled above $2300.

WTI Oil Rallies As Traders Wait For Big Production Cuts From OPEC+

WTI oil moved about the $86 level amid reports that OPEC+ will agree to major production cuts. Some sources argue that OPEC+ may cut production by as much as 2 million bpd.

OPEC+ looks ready to set the floor under oil prices in the $80 – $90 range, so WTI oil has a decent chance to gain additional upside momentum as traders prepare for the cartel’s moves.

Natural Gas Rebounds From Multi-Month Lows

Natural gas failed to settle below the support at $6.30 and moved back above the $6.55 level amid a broad rebound in commodity markets.

The current rebound looks technical, and it remains to be seen whether natural gas will be able to gain additional upside momentum in the upcoming trading sessions.

The weather forecast is unfavorable for high natural gas consumption, and the next EIA report may show that working gas in storage increased by more than 100 Bcf from the previous week, which will be bearish for natural gas markets.

Copper Gains Ground As Dollar Declines

Copper moved back to the $3.50 level as traders reacted to the strong pullback in the U.S. dollar. The general optimism in commodity markets also provided support to copper.

Copper must settle above the 50 EMA at $3.54 to have a chance for a sustainable upside move in the upcoming trading sessions.

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