Gold Tests Resistance At $1775

Key Insights

• Gold tries to gain more ground despite stronger dollar and higher Treasury yields. 
• WTI oil is under pressure as coronavirus cases in China continue to grow. 
• Natural gas rebounds due to colder weather. 

Gold Markets Ignore Stronger Dollar

Gold has recently made an attempt to settle above the resistance at $1775 but lost momentum and pulled back towards the support at the $1765 level.

Interestingly, gold continues its attempts to move higher despite stronger dollar and higher Treasury yields. In addition, gold rallied from $1615 to $1775 without any notable pullback, so some traders may want to take profits off the table.

 

Gold needs to settle above $1775 to continue its rebound. If gold climbs above the $1775 level, it will head towards the next resistance at $1785. A successful test of the resistance at $1785 will push gold towards the $1800 level.

On the support side, the nearest support level for gold is located at $1765. If gold declines below this level, it will move towards the support at $1750. A move below the support at $1750 will open the way to the test of the support at $1730.

Meanwhile, silver made another attempt to settle above the $22.00 level. Platinum pulled back below $1035, while palladium declined closer to the $2000 level.

WTI Oil Is Losing Ground As Traders Worry About Rising Coronavirus Cases In China

WTI oil moved towards the $87 level as traders focused on rising coronavirus cases in China. The country has recently relaxed its coronavirus restrictions, but traders worry that it may quickly get back to the strict zero-COVID policy if the number of new cases continues to move higher.

From a big picture point of view, WTI oil needs more catalysts to gain sustainable upside momentum as traders remain worried about recession in developed economies.

Natural Gas Rebounds As Weather Gets Colder

Natural gas  rallied towards the $6.40 level as traders reacted to the change in weather forecasts. Natural gas consumption is expected to be high due to the colder than normal temperatures.

Traders will also continue to wait for clarity on Freeport LNG, which was expected to get back to work in late November. According to recent reports, Freeport LNG has not secured all regulatory approvals. If the restart of Freeport LNG is delayed, natural gas prices may find themselves under pressure.

Copper Pulls Back Amid Profit-Taking

Copper pulled back below $3.85 after an unsuccessful attempt to settle above the $3.90 level.

Rising coronavirus cases in China and profit-taking after the strong rally served as the main catalysts for the move.

If copper manages to settle above the $3.90 level, it will move towards the psychologically important $4.00 level.

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