Natural gas futures spiked higher early Monday, catching many traders by surprise and triggering a massive short-covering rally. The market retreated from its high,
Gold Prices Edge Higher but Stay Within Sight of 2-Week Lows – Gold prices edged higher on Tuesday, but stayed within sight of the prior session’s two-week lows as markets continued to grapple with uncertainty over who will become the next Federal Reserve chief and how that will influence the outlook for interest rates. President Donald Trump told reporters on Monday he is “very, very close” to deciding who should chair the Federal Reserve after interviewing five candidates for the position. These include current Fed Chair Janet Yellen, whose term expires in February, as well as Fed Governor Jerome Powell, Stanford University economist John Taylor, Trump’s chief economic advisor Gary Cohn, and former Fed Governor Kevin Warsh. The U.S. dollar index held near a two-week high against the other major currencies, while bond yields remained supported near their recent peaks, dampening the appeal of bullion. The yellow metal recovered from an early decline to eke out a small gain on Monday as stocks lost some steam after a run to another round of all-time highs. Interest rate futures are pricing in around a 90% chance of a December Fed rate hike according to Investing.com’s Fed Rate Monitor Tool. The U.S. central bank has already raised rates twice this year. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.
Crude Oil Prices Steady as Focus Shifts to U.S. Stockpile Data – Crude oil prices held steady on Tuesday, as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products. Oil prices eked out a small gain on Monday as traders weighed disruptions in Iraqi oil production and a drop in U.S. drilling activity. They received another boost amid expectations that major global producers will extend a deal to curb production beyond its current expiry date next March. The original deal, struck nearly a year ago between OPEC and 10 other non-OPEC countries led by Russia, was to cut production by 1.8 million barrels a day for six months. The agreement was extended in May of this year for a period of nine months until March 2018 in a bid to reduce global oil inventories and support oil prices.
NATURAL GAS : Natural gas futures spiked higher early Monday, catching many traders by surprise and triggering a massive short-covering rally. The market retreated from its high, but still managed to close higher for the session. The catalyst behind the rally was a change in the weather forecast which showed a return to colder weather after a warm spell in the eastern U.S. Monday’s early price action changed the main trend to up according to technical indicators when the market crossed the recent top at $3.185. However, despite the strength, buyers still had a hard time taking out a major 50% to 61.8% retracement zone at $3.183 to $3.223.On the downside, a new support zone was formed at $3.105 to $3.083. According to reports from natgasweather.com, a weather system with cooler temperatures is expected to linger across the northern and eastern U.S. through the first week of November.
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