Gold prices continue their recovery following a brief dip last week. After reaching a high of $2,950 in the final days of February, the price temporarily retreated to $2,850. However, buyers stepped in to defend this level, reminiscent of earlier price action in the month. Given the strong support at this level, another test of $2,950 appears likely in the near future, indicating continued bullish sentiment for gold.
WTI Crude Slumps to Multi-Month Low
U.S. WTI crude oil prices hit their lowest levels since November on Tuesday, though the session ended with prices recovering somewhat off their lows. Despite the bounce, there is no clear indication yet that a bottom has formed in the market. A more definitive recovery would require a move back above the $68 mark, with further gains needed to confirm a trend reversal.
The downside momentum remains strong, as reflected by low stochastic readings over the past month. This suggests that further losses towards $65 and possibly even the September lows cannot be ruled out. The market continues to face headwinds from concerns about demand and the broader economic outlook.
Natural Gas Hits Two-Year High
Natural gas prices surged to their highest level since December 2022 on Tuesday, continuing their impressive rally into the early part of the current session. Since February, natural gas has gained 1,300 points, marking a significant rebound. While the rally shows no immediate signs of slowing, the price action appears stretched in the short term, particularly relative to the rising 50-day moving average. Traders will be watching for potential consolidation or a pullback in the near future, given the strong upward momentum seen in recent weeks.
Conclusion
Gold remains in recovery mode, with a potential test of $2,950 on the horizon after defending the $2,850 level. WTI crude oil continues to face downward pressure, with further losses possible unless prices break back above $68. Natural gas has surged to a two-year high, benefiting from a strong rebound, but the market may be overextended in the short term. Market participants will continue to monitor key technical levels and global economic factors as these commodities move forward.
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