Gold Tests Resistance At $1800

Key Insights

• Gold moves higher as the strong rebound continues. 
• WTI oil remains under pressure ahead of the weekend. 
• Natural gas tested resistance at $6.40 as traders bet on colder weather. 

Gold Is Moving Towards Recent Highs

Gold gained upside momentum despite higher Treasury yields and is currently trying to settle above the psychologically important $1800 level.

In case gold manages to settle above the $1800 level, it will head towards the next resistance at $1815. A successful test of the resistance at $1815 will push gold towards the $1830 level.

On the support side, a move below $1800 will open the way to the test of the support level at $1785. If gold declines below this level, it will move towards the next support at $1775.

Other precious metals have also gained material upside momentum in today’s trading session. Silver managed to get above the $23.50 level. Platinum moved towards $1035, while palladium settled near the $1950 level.

WTI Oil Remains Under Pressure

WTI oil made an attempt to settle above the $73 level but lost momentum and pulled back below $71.50.

Oil traders stay focused on the potential weakness of oil demand in the upcoming months. The market does not believe that Russian oil exports will decline as a result of the oil price cap scheme.

If traders stay focused on recession risks, WTI oil will have a good chance to test the psychologically important $70 level.

Natural Gas Gains Ground As Traders Bet On Rising Demand

Natural gas  tested the $6.40 level as the rebound continued. Traders expect that colder weather will boost demand for natural gas.

In case natural gas manages to settle above the resistance level at $6.40, it will gain additional upside momentum and move towards the next resistance, which is located at $6.75.

Copper Is Mostly Flat Ahead Of The Weekend

Copper made another attempt to settle above the $3.90 level but failed to develop sufficient upside momentum and settled near $3.88. China’s gradual re-opening remains the key driver for copper markets, and copper has a decent chance to test the $4.00 level in the next few weeks.

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