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Gold Tests Resistance At $1675

By:
Vladimir Zernov
Published: Sep 30, 2022, 16:22 UTC

Silver moved back above the $19.00 level. WTI oil declined below $81.

Gold Tests Resistance At $1675

In this article:

Key Insights

  • Gold moved higher as Treasury yields declined. 
  • WTI oil pulled back despite rising geopolitical uncertainty. 
  • Natural gas continues its attempts to settle above the resistance at $6.90.

Gold Gains Ground Despite Stronger Dollar

Gold is trying to settle above the resistance at $1675 as Treasury yields decline. The U.S. dollar gained some ground against a broad basket of currencies today, but this move did not put any pressure on gold markets. It remains to be seen whether the recent increase in geopolitical tensions will provide more support to gold, but this scenario should not be ruled out.

Gold

Gold is currently trying to settle above the 20 EMA, which is located near the $1675 level. Previously, gold faced strong resistance near $1675, so it may need additional catalysts to settle above this level. A move above the 20 EMA will signal that gold will try to develop additional upside momentum.

Other precious metals are also moving higher. Silver settled above the $19 level. Platinum moved towards $870, while palladium continued to trade near $2200.

WTI Oil Pulls Back Ahead Of The Weekend

Interestingly, rising geopolitical tensions and new sanctions on Russia (which did not include oil) did not provide any support to oil markets.

WTI oil moved back below the $81 level as traders were worried that demand will slow down in the remaining months of the year.

From a big picture point of view, WTI oil remains in a strong downside trend, and it will need additional positive catalysts to settle above the key resistance at the 20 EMA near the $84 level.

Natural Gas Tests Resistance At $6.90

Natural gas continues its attempts to settle above the resistance at $6.90. Compared to the previous days, today’s trading session is calm.

Natural gas found significant support in the $6.55 – $6.75 range, but it remains to be seen whether it can attract enough buyers to get above the $7.00 level ahead of the weekend.

Copper Is Mostly Flat As Traders Wait For New Catalysts

Copper is trading near the $3.42 level as traders are not ready for big moves ahead of the weekend.

It looks that stronger dollar has also put some pressure on copper markets. Most likely, the real test of the 20 EMA at $3.45 will happen next week.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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