The price of natural gas recovers after a steep decline
After a significant sell-off, natural gas found support at $4.75 and surpassed resistance at $5.10 on profit-taking.
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The weather prediction remains adverse for high natural gas usage, but the current price dynamics are unaffected because natural gas markets were oversold.
$5.35 is the nearest important resistance level for natural gas. If natural gas settles above this level, it will proceed toward the $5.70 level, the next point of resistance. A successful test of this level will push natural gas into the $6.00 level of resistance.
On the support side, natural gas must re-establish itself below $5.10 to have a chance of gaining near-term bearish momentum. The upcoming support level for natural gas is $4.90. If natural gas falls below this level, it will head towards the recent support around $4.75.
WTI Oil Remains Volatile
WTI oil recently attempted to close over $85.50 but lost steam and retreated below $84.50 as traders remained concerned about the global economic slowdown.
The PMI figures released today underscored the decline in advanced economies. China’s third-quarter GDP increased by 3.9% quarter-over-quarter, which was a positive sign, but the dismal Retail Sales report indicated that the economic situation remained severe.
In the grand scheme of things, WTI oil is attempting to stabilize in the $83 to $86 region. WTI oil will have a good possibility of gaining upward momentum if it manages to settle over $86 if this attempt is successful.
Gold falls as Treasury yields increase
Gold fell below $1650 as the yield on 30-year Treasury bonds reached fresh highs. Despite today’s negative U.S. PMI figures, rates on shorter-term Treasuries have also increased.
Additionally, other precious metals are under pressure. Silver tried to settle over $19.50 but lost impetus and retreated to $19.00. Platinum fell toward $930, whereas palladium climbed toward the $1965 support level.
Copper Encountered Strong Opposition Near $3.50
Copper retreated below the $3.45 level as traders concentrated on the possibility of a recession. Copper markets are particularly sensitive to changes in the economic outlook, thus recession worries will continue to be the primary negative driver in the coming months.
In the grand scheme of things, copper is trapped between the $3.25 support level and the $3.60 resistance level. Copper will certainly require major catalysts to escape this range.