Commodities Daily Forecast – April 27, 2017

Gold

Gold futures weakened on Wednesday, but technical factors helped stop the price slide. Profit-taking and short-covering also contributed to the late session rebound. A reversal to the downside by U.S. equity markets after the release of President Trump’s disappointing tax plan also sent investors back into gold.

We could see a short-covering rally over the near-term, but this price action is likely to set up the next shorting opportunity. All week, we’ve seen investors exiting long positions. We’ve also seen sell stops getting hit. This next rally, however, is likely to attract real shorting pressure… Read More

Silver

Silver initially tried to rally during the session on Wednesday but turned around and fell rather significantly. I think there is a lot of noise just below, but I think that the $17 level is where we will really start to see support pick up again. Because of this, I think that short-term sellers will continue to jump into this market, but longer-term I still believe in the viability of a silver rally… Read More

WTI Crude Oil

Crude oil prices whipsawed on Wednesday, first dropping and then climbing, following the larger than expected draw in crude oil inventories and the larger than expected build in heating oil, and gasoline inventories reported by the Department of Energy. Prices continue to form a head and shoulder reversal pattern, and a break of the neckline which is trend line support could generate a long liquidation.  Demand for distillates remain robust, but gasoline demand continues to disappoint… Read More

Natural Gas

Technical and fundamental factors helped drive natural gas futures sharply higher on Wednesday. Prices surged from nearly a one-month low on scarce selling pressure and reports of cooler temperatures approaching several key demand areas.

Investors came in strong on Wednesday after posting a potentially bullish closing price reversal bottom the session before. The market turned as prices approached a key retracement zone at $3.120 to $3.048. This suggests that investors, looking for value, came in to turn the market around. They may have also been buying in anticipation of tighter supplies later in the year… Read More