Gold and natural gas move cautiously higher, while oil price struggle
It is a quiet morning in commodity markets, but gold and natural gas have edged higher, while oil prices are trying to stabilise after yesterday’s sharp fall.
Gold pushes up in early trading
An indecisive session yesterday saw the price stuck fast, unable to make much progress higher or lower. However, the buyers may view it as a win since they halted the three days of losses for the commodity, and held support at $1830.
Some small gains this morning have seen it rally off support, and now a test of the 200-day simple moving average (SMA) looms.
A recovery above $1854 would cancel out the bearish view, and suggest another attempt to break above the June highs at $1875 is in play.
WTI under pressure after fall
After yesterday’s heavy falls the price has managed to stabilise above $104 for the time being, rallying off the overnight lows. Recession fears drove the price sharply lower, with investors fretting about the outlook for global growth.
Further gains in the short-term would head towards the 50-day SMA (currently $109.15), and then additional gains head towards $110.70 and $114.83.
Fresh declines target yesterday’s low at $101.30, and then on towards $97.30 and $95.11.
Natural gas edges higher
The price returned to the support level around 64.60 that held in April and May, although for now the bounce is fairly weak.
Additional gains target trendline resistance from the June high, towards 72.05. A break above here is needed to provide a more firmly bullish view.
A move below the support zone and then below 63.80 will open the way to the 54.40 peak from February.
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