WTI Oil Drops 4.5% On Demand Worries

China’s coronavirus-related problems continue to put pressure on oil markets.
Natural gas rebounds amid profit-taking.
Gold tests new highs as dollar pulls back.

WTI Oil Retreats As Traders Fear That China’s Demand Will Drop

WTI oil declined below the $74 level amid worries about the state of the world economy and rising coronavirus cases in China.

China stopped providing timely data on the situation with coronavirus, so it is not clear what is happening in the country. Some analysts speculate that China’s hospitals are overwhelmed.

Oil bulls are nervous as China is an extremely important source of demand for oil. In case China’s economy faces additional problems due to the high number of coronavirus cases in the country, oil prices will find themselves under more pressure.

Natural Gas Rebounds As Traders Take Some Profits Off The Table

Natural gas rebounded after the recent sell-off. Currently, natural gas is trying to settle back above the $4.20 level.

The weather forecast remains unfavorable for high and even moderate natural gas consumption in the upcoming days. The weather is expected to stay warm, which is bearish for natural gas prices. Today’s rebound is likely driven by profit-taking after the strong move.

Gold Tests New Highs At $1865

Gold tested new highs at $1865 as Treasury yields continued to move lower. The pullback in the U.S. dollar provided additional support to gold today. In addition, it looks that traders searching for safe-haven assets have finally started to pay some attention to gold markets.

Silver settled near the $24.00 level after an unsuccessful attempt to climb above $24.50. Platinum faced some resistance near $1100. Meanwhile, palladium gained strong upside momentum after yesterday’s sell-off and moved back towards the 20 EMA at $1790.

Copper Pulls Back Amid Demand Worries

China’s coronavirus-related problems continue to put pressure on copper markets. Copper managed to get below the $3.75 level and made an attempt to settle below the 50 EMA at $3.72. In case traders stay focused on the alarming news from China, copper markets will remain under pressure.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.

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