Natural Gas Tests Support At $8.00 As Pullback Continues

Key Insights

• Natural gas markets are moving lower ahead of the weekend. 
• WTI oil rebounds after yesterday’s sell-off.
• Gold moves away from yearly lows as dollar pulls back from highs. 

Natural Gas Remains Under Pressure

Natural gas declined towards the $8.00 level as pullback continued. The market has completely erased gains made at the start of the week as the rail strike was averted.

Natural gas managed to settle below the 50 EMA at $8.35 and is testing the support level at $8.00. In case this test is successful, natural gas will move towards the next support level, which is located at $7.80. A move below this level will push natural gas towards the support at $7.65.

On the upside, the previous support at the 50 EMA will serve as the first resistance level for natural gas. If natural gas climbs back above this level, it will head towards the resistance at the 20 EMA at $8.55.

WTI Oil Climbed Above $86

WTI oil moved back above the $86 level after yesterday’s sell-off. Oil markets have been extremely volatile in recent trading sessions.

At this point, traders focus on supply worries, which are bullish for oil markets, and recession risks, which are bearish.

In this environment, oil markets’ sentiment is almost unpredictable. Most likely, oil markets will need significant catalysts for a sustainable move.

Gold Rebounds Despite Higher Treasury Yields

Gold moved towards the $1675 level as the U.S. dollar pulled back from session highs. Treasury yields tested new highs today, but gold markets ignored this move. Most likely, gold markets received some support from rising demand for safe-haven assets.

Meanwhile, silver has also managed to gain upside momentum and moved towards the $19.50 level. Platinum remained stuck near the $900 level, while palladium declined below the $2100 level.

Copper Moves Back Above $3.50

Copper rebounded above $3.50 despite worries about the slowdown of the world economy.

Interestingly, Bloomberg has recently published a report which indicated that big banks cut financing to China’s metal trade.

However, this report had no impact on copper markets today, and copper rebounded together with oil markets.

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