Once we do get a move, it could be rather sizable and profitable for those who are patient enough to wait for it to show itself.

• Gold markets rallied a bit on Friday to reach toward the $1800 level in the spot market.
• It’s worth noting that we have seen a lot of selling pressure in this area, so it does suggest that we are going to see a big fight on our hands.
• It’s also worth noting that this market has a high sensitivity to interest rates, something that a lot of people are focusing on right now.

The Future of Fed Monetary Policy

There’s a big argument right now between traders as to whether or not the Federal Reserve is going to continue to tighten monetary policy in the face of significant inflation. The Federal Reserve has stated repeatedly that they are in fact going to do so, but Wall Street does not seem to believe that. They have caused a massive squeeze on certain risk assets under the idea that the Fed will eventually bend their way. If the Fed does in fact end up loosening monetary policy, that is good for gold. Looking at the interest rate markets, it appears that a lot of people believe they will.

That being said, there’s also the possibility that perhaps people are buying bonds for the fact that they see a recession coming. We have a lot of crosscurrents at the same time, so it’s difficult to imagine that the trade in gold is going to be simple. However, I have a couple of levels that I am paying close attention to, beginning with the $1815 level. If we can break above that level, then it’s likely that the market could go looking to reach the 200-Day EMA.

On the other hand, if the market were to break down below the 50-day EMA underneath, then it opens up a lot of selling pressure. The $1750 level underneath could be a significant support level, as it had been a previous resistance barrier. In this scenario, we would probably see the US dollar pick up quite a bit of strength as well. Overall, I think we are at the major inflection point and will have to watch where the next squeeze comes from, and which direction it kicks often. Once we do get a move, it could be rather sizable and profitable for those who are patient enough to wait for it to show itself.

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Our expectations point to more ascent for natural gas during its upcoming trading.

Spot natural gas prices (CFDS ON NATURAL GAS) rose in their recent trading at the intraday levels, to achieve strong daily gains until the moment of writing this report, by 3.60%. It settled at the price of $8.770 per million British thermal units, after rising by 1.43 during trading on Friday. %. During the last week, the price decreased by -1.84%.

The commodity’s gains come despite a negative storage report released last Thursday by the US Energy Information Administration. Inventories left 15.1 percent below the five-year average.

Long-term forecasts from the Local Weather Service report temperatures that are cooler than seasonal temperatures in the Midwest and Northeast of the United States over the next 6 to 14 days, reducing demand for cooling.

Meanwhile, Texas power demand is set to break an all-time record this week, ahead of the hottest days of summer, testing the state’s power grid resilience after problems earlier this year and blackouts for days of the year.

Technically, natural gas is preparing for its recent rise to attack the pivotal resistance level 8.870. It is in complete control of the main bullish trend in the medium and short term along a slope line, as shown in the attached chart for a (daily) period. The positive pressure is continuing to trade above its simple moving average for a period of the previous 50 days. We notice the beginning of a positive crossover on the RSI indicators, after reaching oversold areas.

Therefore, our expectations point to more ascent for natural gas during its upcoming trading, but provided that it first breaches the resistance level 8.870, to confirm to us its intention to continue rising, after which it will target the first resistance levels at 9.550.

Our expectations suggest that natural gas will rise during its upcoming trading.

Spot natural gas prices (CFDS ON NATURAL GAS) settled on a rise in their recent trading at intraday levels, to record slight daily losses until the moment of writing this report, by -0.32%. It settled at the price of $8.670 per million British thermal units, after rising sharply during trading. Yesterday, it increased by 6.10%.

Denmark’s largest energy company said Russia cut off its gas supplies on Wednesday because it refused to pay in rubles, the latest escalation over European energy amid the war in Ukraine. Russia had previously halted natural gas supplies to Finland, Poland, and Bulgaria for refusing to request payment in rubles, and on Tuesday it shut down supplies to the Netherlands.

The Danish Energy Agency said that in the first 18 weeks of 2022 Russian gas accounted for nearly 25% of gas consumption in the European Union. The agency said Denmark’s loss of supplies would not have immediate consequences.

Before that, European Union leaders agreed on Tuesday to cut about 90% of all Russian oil imports over the next six months. The 27-nation conglomerate depends on Russia for 25% of its crude oil and 40% of its natural gas.

Meanwhile, the United States exported 7.29 million tons of liquefied natural gas last month, the second highest level ever, with sales expanding to Europe and South America. The United States is on track to become the world’s largest exporter of liquefied natural gas this year, with Australia and Qatar leading as producers work to boost liquefaction capacity.

Technically, the price regained its activity as a result of the stability of the support level 8.054, which gained it some positive momentum. It is prepared now to attack the pivotal resistance level 8.870, in complete control of the main bullish trend in the medium term along a slope line. The positive pressure is continuing to trade above its 50-day simple moving average previously. We notice the influx of negative signals on the RSI indicators, which might curb the commodity’s gains in its upcoming trading.

Therefore, our expectations suggest that natural gas will rise during its upcoming trading, but on condition that it first breach the pivotal resistance level 8.870, to confirm its intention to continue rising, to target the resistance level 9.550.

We expect more rise for natural gas during its upcoming trading.

Spot natural gas prices (CFDS ON NATURAL GAS) rose in their recent trading at the intraday levels, to achieve slight daily gains until the moment of writing this report, by 0.88%. It settled at the price of $8.787 per million British thermal units, after rising sharply during yesterday’s trading by amounting to $8.787 per million British thermal units. 8.44%.

Natural gas futures rose on Monday, ending their two-day loss, as US exports gained more momentum and modest production to offset cooler near-term weather forecasts. June gas futures contracts in Nymex settled at $8.744 per million British thermal units, an estimated increase of 66.1 cents on the day. The July contract advanced by 64.9 cents to $8.827.

Production in the United States exceeded 95 billion cubic feet, according to Bloomberg estimates on Monday, marking an increase of more than 1.5 billion cubic feet from the previous week’s lows. However, production remained below the roughly 97 billion cubic feet the market is looking for to ensure adequate supplies for the summer as well as next winter.

Meanwhile, US LNG exports on Monday rose more than 13 billion cubic feet, after exceeding that limit last Friday.

While domestic weather demand eased some forecasts on Monday, there is not enough to allay concerns about natural gas consumption outstripping supply in the event of a hot summer.

Technically, the price is attacking the pivotal resistance level 8.870 with its recent rise. This is the level at which it recorded the last peak on May 6, amid the dominance of the main bullish trend over the medium and short term along a trend line. This is shown in the attached chart for a (daily) period, supported by its continuous trading above its simple moving average for the previous 50 days, in addition to the influx of positive signals on the relative strength indicators.

Therefore, we expect more rise for natural gas during its upcoming trading, but first it has to cross the resistance obstacle at 8.870, to target immediately after that the first resistance levels at 9.550.

We expect more rise for natural gas during its upcoming trading, especially in case it breaches the resistance 8.054.

Spot natural gas prices (CFDS ON NATURAL GAS) rose in their recent trading at the intraday levels, to achieve daily gains until the moment of writing this report, by 0.92%, to settle at the price of 7.995 dollars per million British thermal units, after rising in trading yesterday by 4.88%.

After last week’s loss, natural gas futures rebounded again on Monday, as traders reflect on reports of strong energy consumption with lower production. The June Nymex contract gained 29.3 cents a day and settled at $7.956 per MMBtu, and the July contract gained 28.8 cents to $8.053.

Production in the United States fell slightly below 95 billion cubic feet, to start on Monday, after briefly rising above that limit last week, according to Bloomberg estimates. Production remained well below a peak of 97 billion cubic feet last winter, amplifying already growing concerns about adequate storage supplies.

The US Energy Information Administration (EIA) recently reported pumping 76 billion cubic feet of natural gas into storage for the week ending May 6. The reading fell from the five-year average storage of 82 billion cubic feet.

Meanwhile, European demand for American liquefied natural gas (LNG) has stabilized at robust levels amid the ongoing Russian war in Ukraine. Countries across Europe are calling for LNG to gradually replace supplies of Russian natural gas.

Rystad Energy also noted the threat posed by Russia to preemptively cut off pipeline gas exports to parts of Europe in response to Western sanctions and recent steps by Finland and Sweden to join the North Atlantic Treaty Organization, also known as NATO.

Russian President Vladimir Putin, in an initial move, cut off Finland’s electricity supply over the weekend. As European Union foreign ministers failed on Monday in their efforts to pressure Budapest to lift its veto against a proposed oil embargo on Russia, the ban would require the approval of all EU countries.

Meanwhile, Shanghai on Tuesday achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones and set out on Monday its clearest timetable yet for exiting the lockdown now in its seventh week.

Technically, the price continues to rise amid the dominance of the main bullish trend in the medium term along a slope line, as shown in the attached chart for a (daily) period. This is the start of positive signals on the relative strength indicators, after they reached oversold areas, in addition to the continuation of the positive pressure in its trades. Above its simple moving average for the previous 50 days, the price attacked the current resistance level 8.054 with its recent rise.

Therefore, we expect more rise for natural gas during its upcoming trading, especially in case it breaches the resistance 8.054, to target after that the pivotal resistance level 8.870.