Oil stabilises while US natural gas drops to 11-month low and gold rallies to 6-month high

​​​WTI regains lost ground after brief dip to below the $80 mark

WTI kicked off 2023 by slipping below the minor psychological $80 mark on fears of a global economic slowdown and lower energy demand but is recovering on hopes that China’s swift re-opening could lead to a faster recovery in the world’s largest oil importing country.

​December’s high at $81.18 and the 55-day simple moving average (SMA) at $81.30 are about to be reached, a rise above which would lead to the early December high at $83.30 being eyed next.

​Below this week’s low at $79.40 a one-month support line can be spotted at $78.40 and the September low at $76.12.

​Gold trades at six-month highs on growth concerns ​

Gold is pursuing its advance at six-month highs and is now trading around $1,850 per troy ounce as growth concerns dominate sentiment at the start of the year.

​On Tuesday morning the precious metal was seen gunning for its mid-June high at $1,857, above which the May-to-June highs can be seen at $1,869 to $1,877 which represent strong resistance. ​

Slips should find support around the $1,833 December peak below which the mid-December high can be found at $1,824.

​US natural gas futures trade at 11-month lows

​US natural gas futures have now slid below $4.0/MMBtu, their lowest level since February 2022, as traders anticipate lower heating demand on the back of clement weather forecasts for January. ​

The Freeport LNG export plant in Texas, forced to shut down in June 2022 following a fire, is also expected to re-open in the second half of January, adding further supply and thus, amid a build-up of inventories, is pushing natural gas prices down as well.

​After seven consecutive days of falling prices, the next downside target is the February 2022 low at $3.875 below which the January 2022 low can be seen at $3.670. ​

Resistance above the minor psychological $4.000 mark can be found at the December-to-January price gap at $4.231 to $4.348.