Natural Gas Rebounds After Sell-Off

Key Insights

• Natural gas markets have moved back to the $8.00 level. 
• WTI oil rebounds despite bearish EIA report. 
• Copper settled back above the $3.50 level. 

Natural Gas Markets Are Moving Higher

Natural gas is trying to settle back above the $8.00 level after the release of the EIA Weekly Natural Gas Storage Report.

The report indicated that working gas in storage increased by 54 Bcf from the previous week, in line with the analyst consensus.

Natural gas markets are trying to rebound as the report was neutral while natural gas was oversold after the strong pullback.

WTI Oil Gains Ground After Yesterday’s Sell-Off

Today, oil traders focused on the EIA Weekly Petroleum Status Report. The report indicated that crude inventories increased by 8.8 million barrels from the previous week, compared to analyst consensus which called for a decline of 0.25 million barrels.

Total motor gasoline inventories grew by 0.4 million barrels, while distillate fuel inventories increased by 0.1 million barrels. Domestic oil production remained unchanged at 12.1 million bpd.

While the report was bearish, WTI oil is moving higher. Yesterday’s sell-off was too strong, and some traders are willing to bet on a rebound despite rising inventories.

Gold Retreats As Dollar Rebounds

Gold made an attempt to settle above the resistance at $1715 but lost momentum and pulled back as the U.S. Dollar Index returned to the 110 level.

Gold faced resistance near the 20 EMA at $1730 and pulled back below the $1715 level. In case gold settles below this level, it will get to the test of the support at $1700. A move below this support level will push gold towards the yearly lows near $1680.

On the upside, gold needs to get back above $1715 to have a chance to gain upside momentum in the near term. The next resistance is located at the 20 EMA at $1730. If gold manages to settle above the 20 EMA, it will head towards the resistance level, which is located near the 50 EMA at $1750.

Meanwhile, palladium mananged to gain strong upside momentum and moved towards the $2150 level. Silver tested resistance at $18.60, while platinum moved towards the $870 level.

Copper Moves Back Above The $3.50 Level

Copper markets share the optimism of oil markets today. Copper gained solid momentum and managed to settle back above the $3.50 level.

Interestingly, stronger dollar and higher yields failed to put any pressure on copper markets today. In case copper stays above $3.50, it will have a good chance to get back to the $3.60 – $3.70 range.

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