Gold Settled Above $1700 As Precious Metals Rallied
- Gold gained strong upside momentum and tested resistance at $1715.
- Natural gas was down by 10% as weather forecast changed.
- WTI oil continued to move lower as China has not announced any material changes to its coronavirus policy.
Gold Rallies As Traders Rush To Buy Precious Metals
Gold rallied above the $1700 level as traders rushed to buy precious metals. Weaker dollar and lower Treasury yields provided material support to gold, but it looks that general interest towards precious metals served as the key positive catalyst today.
Currently, gold is trying to settle above the resistance level at $1715. In case this attempt is successful, gold will move towards the next resistance at $1730. A successful test of the resistance at $1730 will open the way to the test of the resistance at $1750. If gold climbs above this level, it will head towards the next resistance level at $1765.
On the support side, the previous resistance level at $1690 will serve as the first support level for gold. In case gold declines below $1690, it will head towards the support at $1675. A successful test of this support level will push gold towards the support at $1660.
WTI Oil Remains Under Pressure
WTI oil pulled back below the $91 level as traders continued to take profits after the recent rebound.
From a big picture point of view, WTI oil failed to settle above the important resistance at $93.50 and moved lower.
Traders hoped that China will relax its zero-COVID policy, but China has not announced any material changes in its approach, which was bearish for oil markets.
Natural Gas Retreats As Weather Forecasts Change
Natural gas prices declined towards $6.25 as traders prepared for warmer weather. The market remains extremely sensitive to the changes in weather forecasts.
In case natural gas settle below the 20 EMA at $6.20, it will move towards the $6.00 level. RSI remains in the moderate territory, so there is enough room to gain additional downside momentum. Most likely, trading will stay choppy in the upcoming trading sessions, and traders should be prepared for fast moves.
Copper Tests The Key Resistance At $3.70
Copper moved back towards the $3.70 level amid a broad rally in the metals segment.
The resistance at $3.70 is a key level for copper markets. If copper manages to settle above this level, it will have a great chance to gain strong upside momentum and move towards the $4.00 level.
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