. Daily Commodity Analysis-Natural Gas and Copper Prices Plummet, Affecting Global Markets

Daily Commodity Analysis-Natural Gas and Copper Prices Plummet, Affecting Global Markets

Daily Commodity Analysis-Natural Gas and Copper Prices Plummet, Affecting Global Markets

03 Oct 2023

Introduction:

In the commodities arena, Natural Gas faces a 3% decline, retreating further from the elusive $3 mark, signalling concerns of lingering weakness through the year-end due to weak demand and mild weather. Meanwhile, Copper prices take a hit in the early days of Q4 2023, driven by a robust dollar and mounting inventories, while other commodities like Oil and Gold grapple with their own challenges in a dynamic market landscape.

Natural Gas:

Natural gas prices drop 3% in further retreat from $3.

As the market continues to decline, natural gas prices end the session 3% down at $2.840/MMBtu after closing last Thursday at a seven-week high just below $3/MMBtu. Analysts claim that the inability of the market to reach $3 last week has led to more selling of the product as speculators fear that prices may linger in the $2 range for the remainder of the weak demand fall season and possibly even through the end of 2023. The recent mild weather patterns are pessimistic, and many would-be investors are staying away from the market because September, the peak month of the hurricane season, ended without any delays to the offshore gas production facilities.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 2.83| Negative Crossover | Bearish
  • MA 20: 2.87 | Negative Crossover | Bearish
  • MA 50: 2.85| Negative Crossover | Bearish

Simple:

  • MA 5: 2.82 | Negative Crossover | Bearish
  • MA 20: 2.89 | Negative Crossover | Bearish
  • MA 50: 2.87 | Negative Crossover | Bearish

RSI (Relative Strength Index): 41.55 | Neutral Zone | Neutral

Stochastic Oscillator: 8.66| Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 2.89 | R2: 3.00
  • S1: 2.80| S2: 2.61

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 2.76 | Take Profit: 2.61 | Stop Loss: 2.86.

Copper:

Copper prices face decline amid strong dollar and growing inventories.

At the beginning of Q4 2023, events took a sudden turn for the worst, and copper prices sharply dropped due to a strong currency and expanding stocks. Because of the strong dollar and the high U.S. interest rates, holders of non-dollar currencies must pay more for metals with dollar prices.

A rise in the amount of copper stocks in warehouses registered with the LME has intensified this tendency even more. The supply pressure has increased due to a rise in Chile’s copper production as well, but demand is holding stable because China’s market is closed for the holidays.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 3.65 | Negative Crossover | Bearish
  • MA 20: 3.68 | Negative Crossover | Bearish
  • MA 50: 3.70 | Negative Crossover | Bearish

Simple:

  • MA 5: 3.65 | Negative Crossover | Bearish
  • MA 20: 3.67 | Negative Crossover | Bearish
  • MA 50: 3.71 | Negative Crossover | Bearish

RSI (Relative Strength Index): 41.04 | Neutral Zone | Neutral

Stochastic Oscillator: 16.98| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 3.74 | R2: 3.93
  • S1: 3.60| S2: 3.34

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 3.53 | Take Profit: 3.34 | Stop Loss: 3.66.

Elsewhere In the Commodity Market.

Oil edges lower on strong US dollar, mixed supply cues. Gold price struggles to capitalize on modest intraday recovery from multi-month low. XAG/USD continues to downside, shedding value and slumping back into $21.00.

Gold down (0.11%) at 1826.12, Silver up (0.33%) at 21.11, Palladium down (0.12%) at 1200.50, Platinum up (0.23%) at 879.00, Brent Crude Oil down (0.01%) at 90.72, WTI Crude Oil up (0.10%) at 88.91 as of writing time.

Key Economic Events & Data Release Today:

No Major events today.