Silver Rallies Towards The $20.00 Level
- The huge rally in silver markets highlights strong demand for commodities.
- WTI oil gains ground as traders stay focused on supply problems.
- Copper remains stuck near the key $3.60 level.
Silver Bulls Enjoy Strong Rally
Silver gained strong upside momentum and moved towards the $20.00 level amid a strong rebound in commodity markets. Gold/silver ratio moved from 92 to 87.50 as demand for silver increased.
Currently, silver is trying to settle above the resistance at $19.80. In case this attempt is successful, silver will move towards the psychologically important $20.00 level. A move above this level will open the way to the test of the resistance at $20.20.
On the support side, the nearest support level for silver is located at the 50 EMA at $19.50. If silver declines below the 50 EMA, it will head towards the support at $19.25. A successful test of the support at $19.25 will push silver towards the support at the 20 EMA at $18.90.
Other precious metals that have significant exposure to industrial demand have also gained significant upside momentum today. Platinum is testing the $900 level, while palladium has managed to settle above $2200. Gold is also moving higher, trying to settle above the resistance at $1730.
WTI Oil Gets Closer To The $90 Level
WTI oil moved towards the $89 level as traders remained focused on potential supply problems. The recent reports about problems in Nigeria, where crude oil production dropped below 1 million bpd, continued to provide support to oil markets.
Meanwhile, there are no signs of progress in Iran nuclear deal negotiations, which is also bullish for oil markets. In case WTI oil manages to settle above the 20 EMA near $89.50, it will have a great chance to get back above the $90 level.
Natural Gas Tests Resistance At $8.35
Natural gas prices have moved towards the $8.35 level as the market continued to rebound after the recent pullback.
In the U.S., traders ignored the developments in the European natural gas markets, which tested multi-week lows.
It looks that the broad rebound in commodity markets served as the main catalyst for natural gas markets today.
Copper Remains Stuck Near The Important Resistance Level At $3.60
Copper markets are also moving higher today. Currently, copper continues its attempts to settle above the $3.60 level.
Interestingly, today’s moves in copper markets are modest, despite the strong rally in metals like silver and palladium, which are sensitive to industrial demand.
For a look at all of today’s economic events, check out our economic calendar.