WTI Oil Retreats On Demand Worries

Key Insights

• WTI oil managed to get back below the $90 level. 
• Gold gained ground as U.S. dollar declined against a broad basket of currencies. 
• Silver moved below the 50 EMA at $19.55.

WTI Oil Remains Under Pressure

WTI oil is currently trying to settle below the psychologically important $90 level as traders focus on recession risks.

While the recent production cuts from OPEC+ provided significant support to oil markets, traders remain worried that the slowdown of the world economy will lead to lower demand for oil.

From a big picture point of view, the current pullback after a strong rally looks healthy, but it is clear that WTI oil needs additional positive catalysts to move closer to recent highs.

Silver Tries To Settle Below $19.50

Recession worries have also put pressure on precious metals like silver, platinum, and palladium. Industrial demand is important for these metals, so they are sensitive to changes in economic outlook.

Silver is currently trying to settle below the 50 EMA at $19.55. In case this attempt is successful, it will head towards the next support level, which is located at $19.25. A successful test of the support at $19.25 will push silver towards the next support level at $19.00. If silver declines below this level, it will move towards the support at $18.80.

On the upside, a move above the 50 EMA will push silver towards the resistance level at $19.80. In case silver climbs back above this level, it will head towards the next resistance at $20.00.

Meanwhile, gold managed to get back above the resistance at $1675 as the U.S. dollar moved lower. In case the pullback of the American currency continues, gold will gain additional upside momentum.

Natural Gas Traders Wait For Catalysts

Natural gas settled below the $6.55 level as rising inventories continue to put pressure on the market. The weather forecast remains unfavorable for high natural gas demand.

In the near term, the market lacks positive catalysts. It should be noted that the upcoming EIA report, which will be released on Thursday, may put additional pressure on natural gas prices as it will likely show that working gas in storage continues to increase at a robust pace.

Copper Attempts To Get Closer To The $3.50 Level

Copper remains stuck near the 20 EMA at $3.45 as traders wait for additional catalysts.

Copper markets have been mostly calm in recent trading sessions. However, traders should keep an eye on the U.S. dollar. In case the current pullback of the American currency continues, copper may get above the $3.50 level.

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