WTI Oil Retreats As Traders Focus On Rising Coronavirus Cases In China

Key Insights

• The strong sell-off in the oil markets continued as traders focused on the problems with coronavirus in China. 
• Gold made an attempt to settle below the $1750 level as Treasury yields moved higher. 
• Copper is trying to get below the $3.65 level.

WTI Oil Managed To Settle Below The Key $80 Level

WTI oil declined below the $80 level and made an attempt to settle below $77.50 as traders feared that rising coronavirus cases in China will lead to lower demand for oil.

The number of new coronavirus cases in China continues to increase at a robust pace, and market participants are worried that China will abandon any plans to further relax its strict COVID policy.

Natural Gas Tests Resistance At $6.40

Natural gas continues its attempts to settle above the key resistance level at $6.40. Yesterday’s EIA report, which indicated that working gas in storage increased by 64 Bcf from the previous week, did not put material pressure on natural gas markets.

The weather forecast remains favorable for high natural gas consumption, which is bullish for natural gas prices. In case natural gas manages to settle above the $6.40 level, it will gain additional upside momentum and move towards the resistance level at $6.75.

Gold Pulls Back As Treasury Yields Keep Moving Higher

Gold is currently trying to settle below the support level at $1750 as Treasury yields continue to rebound. The recent hawkish comments from Fed’s Bullard put additional pressure on bond markets, pushing yields away from recent lows.

Gold managed to settle below the support at $1765 and is testing the next support level at $1750. If this test is successful, gold will move towards the next support level, which is located at $1730. A move below this level will open the way to the test of the support at $1715.

On the upside, the previous support at $1765 will serve as the first resistance level for gold. In case gold climbs above this level, it will move towards the resistance at $1775. A successful test of the resistance at $1775 will push gold towards the next resistance level at the recent highs at $1785.

Meanwhile, silver managed to get back above the $21.00 level. Platinum remained stuck near $1000, while palladium declined towards $1950.

Copper Is Moving Towards The Support Level At $3.60

Copper remains under strong pressure due to coronavirus-related news from China.

Currently, copper is trying to settle below $3.65. In case this attempt is successful, copper will move towards the $3.60 level.

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