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Gold prices fell to a two-week low on Thursday as signs of easing trade tensions boosted risk appetite and reduced golds safe-haven appeal, while a stronger dollar also weighed on gold prices. "The market remains confident that the United States will soon sign a lower tariff agreement with other countries, and this optimism, coupled with a stronger dollar, is weighing on gold prices," said Giovanni Staunovo, an analyst at UBS. Investors are waiting for Fridays non-farm payrolls report to gain further insight into the Feds policy direction. "A weak jobs report should support the Feds calls for further rate cuts this year and push gold prices back to $3,500 an ounce in the coming months," said Giovanni Staunovo.On May 1, institutional analysis pointed out that gold futures plummeted due to easing trade tensions and declining safe-haven demand. The strengthening of the US dollar further dampened enthusiasm for gold as a safe-haven asset and made dollar-denominated commodities more expensive for international buyers. The United States is likely to reach a trade agreement, and market optimism and risk appetite are rising. However, further losses may be limited because expectations of interest rate cuts have also been raised after the United States released a series of weak economic data. The US economy contracted by 0.3% in the first quarter. Lower interest rates usually stimulate demand for non-interest-bearing gold.Ukraines Foreign Minister: The EUs top diplomat has been informed of the mineral agreement reached with the United States.According to the Wall Street Journal: Citigroup hired Trumps former trade chief Robert Lighthizer.According to the Wall Street Journal: The U.S. government has commissioned L3Harris to completely transform a Boeing 747 once used by the Qatari government.

Natural Gas Price Analysis: The XNG/USD pair retreats to $2.24 within the immediate bearish channel

Daniel Rogers

Apr 17, 2023 13:46

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During the early hours of Monday, the price of Natural Gas (XNG / USD) pares intraday gains of about $2.33. In doing so, the energy asset retreats from a three-week-old bearish channel's upper line.

 

However, the bullish MACD signals and convergence of the 21-SMA and 50-SMA around $2.24 limit the XNG/USD's immediate downside.

 

In the event that the price of Natural Gas falls below $2.24, the stated channel's support around $2.11 will be crucial to monitor, as it will be the lowest point since August 2020 from which the price of XNG and USD has previously rebounded.

 

If the quote remains bearish beyond $2.11, the possibility of a decline toward the $2.00 round number cannot be ruled out. However, the peak near $1.95 in July 2020 could pose a threat to Natural Gas Bears in the future.

 

In contrast, a clear breach of the stated channel's upper line, near $2.35, is not an open invitation for the XNG/USD bulls, as the 200-SMA hurdle near $2.44 can act as the Natural Gas bears' last line of defense.

 

Even if the commodity price remains firmer beyond $2.44, the mid-March swing low near $2.48 and the $2.50 round number can act as additional upside filters before Natural Gas purchasers gain control.


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