Yesterday's gains in WTI Oil are reversed

WTI oil prices decline as Iraqi demonstrations pose little threat to oil production. Gold settles below $1730 as a stronger currency and rising Treasury yields exert downward pressure on precious metals. Copper tests support around $3.55 as market participants continue to focus on recession worries.

As yesterday's protests in Iraq failed to cause instability in the country, WTI oil prices returned to the $93 level. There is no threat to oil output, therefore following yesterday's gain, traders opted to take profits.

In the meantime, commodity markets experienced widespread pressure as the U.S. dollar approached its annual highs. Concerns over the robustness of economic growth were sparked by a stronger currency and rising Treasury yields, which was unfavorable for oil markets.

As the decline in European markets continues, natural gas prices are attempting to settle below the $9.00 mark. The aforementioned recession concerns act as a further adverse impetus for the U.S. natural gas markets.

Gazprom recently alerted Engie of its intention to decrease natural gas delivery due to a contractual dispute. Interestingly, this action did not support European natural gas prices further. Traders currently expect that Europe will attain the required natural gas storage levels prior to winter, which acts as a bearish catalyst.

In the United States, traders will continue to monitor the natural gas markets in Europe. In addition, they will remain focused on the outlook for economic growth. If markets remain concerned about the possibility of a recession, natural gas prices will likely fall below $9.00.

Strong dollar and rising Treasury yields exerted further pressure on gold prices, which fell below the $1730 support level. If gold settles below this level, it will move toward the $1715 level, the next support. A successful challenge of the support level at $1715 will drive gold towards the support level at $1700. If gold falls below $1700, it will seek support near the $1680 lows for the year.

A rise above $1730 will take gold towards the $1755 resistance at the 20-day exponential moving average. If gold settles back above the 20-day exponential moving average, it will move toward the 50-day moving average at $1,770.

Silver, which is vulnerable to economic forecasts, is attempting to settle below $18.50 per ounce. The gold/silver ratio has reached annual highs at 94, and the pressure on silver markets continues to be intense. Platinum fell toward the $830 mark, while palladium fell to the $2075 mark.

Copper continues to decline amid a widespread commodity market sell-off. Copper is currently attempting to fall below the $3.55 support level. Copper will get extra negative momentum if this attempt is successful. RSI remains in the moderate region, therefore there is possibility to gain extra momentum if the appropriate catalysts materialize.