Natural Gas Price Dives Below $8.50

Key Insights

• U.S. natural gas markets followed the strong pullback in the European natural gas markets. 
• Strong dollar put significant pressure on gold and silver. 
• WTI oil is trading near the key support area. 

Natural Gas Markets Are Under Strong Pressure

Natural gas prices declined below the $8.50 level as the recent successful test of the support at $9.00 caused a sell-off.

In Europe, natural gas markets pulled back on worries about the strength of natural gas demand. Factories are closing due to high prices, which may be bearish for European natural gas markets. However, the heating season will start relatively soon, and it remains to be seen whether the current pullback will continue.

In the U.S., traders will monitor the developments in the European natural gas markets, although they have no direct impact due to the problems at Freeport LNG. These problems will boost domestic supply, which is bearish for U.S. natural gas markets.

WTI Oil Retreats Towards Multi-Month Lows

WTI oil pulled back below the $88 level amid worries about the strength of demand in the remaining months of the year.

The recent OPEC+ decision to cut production targets by 100,000 bpd in October failed to provide sustainable support to oil markets. It looks that traders have interpreted the decision as a sign of weaker demand for oil in the future.

Currently, WTI oil is trading near a strong support area. In case WTI oil manages to get to the test of the $85 level, it may be able to gain strong downside momentum and move towards the $80 level.

Gold Pulls Back As U.S. Dollar Tests New Highs

U.S. dollar moved to new highs today as traders rushed out of riskier currencies. This move put additional pressure on gold, which declined towards the $1700 level.

Gold failed to settle above the resistance at $1715 and retreated towards the $1700 level. If gold settles below this level, it will head towards the next support at $1680. A move below the support at $1680 may lead to a sell-off.

The strong dollar has also put pressure on silver, which pulled back towards $18.00. Palladium moved back below the $2000 level. Interestingly, platinum managed to gain some ground and climbed back above the $830 level.

Copper Tries To Rebound Towards $3.50

Copper markets managed to gain some upside momentum today and moved towards the $3.50 level.

It looks that copper found some buyers after the recent pullback. However, it is not clear whether the current upside momentum will be sustainable as risks for growth of the world economy remain significant.

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