Natural Gas Price Prediction – Prices Eased After Boost from Inventory Report 

Key Insights

  • Natural gas pulls back from this week’s highs. 
  • The weather is expected to be warmer than usual throughout the South.
  • Natural gas supply rose this week.

Natural gas prices traded lower, settling lower after three consecutive days of gains. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days and 8-14 days throughout most of the South.

Temperatures have been cooler in the Northwest. Inventories rose in the latest week. According to the EIA Natural Gas Storage Report, natural gas prices decline as consumption falls. This scenario comes as a result of warmer and more moderate temperatures across the United States and less heating demand. 

Technical Analysis

On Friday, natural gas prices dipped below the 10-day moving average near 7.812, extending gains for the third consecutive trading session. Target resistance is seen near the May highs at $8.99.

Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Medium-term momentum has turned negative. The MACD (moving average convergence divergence) generated a crossover sell signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.

USD/CAD Price Prediction – USD/CAD Traded Lower Amid Rebound in Crude Oil and Equities

Key Insights

  • Gold prices traded lower. 
  • Treasury yields soared as investors piled into equities.
  • Oil prices rose as demand concerns outweigh supply issues.

USD/CAD moved lower as risk-on sentiment underpins the Loonie. The dollar sustains its upward trend as investors predict more aggressive Fed rate tightening. Benchmark yields rose as investors rotated into stocks and sold bonds. The ten-year yield soared by 9 basis points today. 

Gold prices declined on a stronger dollar due to bets of more aggressive Fed rate tightening in the coming months. Oil prices increased on Friday after volatile trading this week.

However, oil prices slid this week due to concerns over China’s lockdowns and rising inflation. These factors offset supply concerns from the potential embargo on Russian oil.

The economic calendar remains light today. Fed Chair Powell’s comments about the state of the economy remain in focus. Economists bet on what the Fed’s next move will be at the June and July meetings. 

However, the main concern is that inflation will still be elevated even if the economy slows down. The latest CPI data made clear that rising inflation is still a lingering concern. The market is pricing in 50-basis point rate hikes for June, July, and likely for September. 

Technical Analysis

The USD/CAD trades below 1.30 today as rising oil prices and risk-on sentiment support the Loonie. However, the bearish trend in the currency pair appears to be short-term. The pair is having a bullish break out as aggressive Fed rate hikes boost the dollar. A break above the 1.30 mark will support a bullish outlook/

Resistance is seen near the horizontal trend line near 1.31. Support is seen near the 10-day moving average of 1.29. A pullback to the 10-day moving average is an opportunity for investors to buy the dip.

Short-term momentum is negative as the fast stochastic had a crossover sell signal. Medium-term momentum is positive as the MACD line generated a crossover buy signal.

This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day MA of the MACD line). The trajectory of the MACD is in positive territory, which reflects an upward trend in price movement.

Gold Price Prediction – Gold Prices Face Losses for the Week on Bets of Aggressive Fed Rate Hikes 

Key Insights

  • Gold prices continued to decline as yields extended gains.
  • Investors placed bets on the size of upcoming rate hikes.
  • Treasury yields soared as equities rallied.

Gold prices declined sharply as equities and bond yields rose. Investors placed bets on more aggressive Fed rate tightening in the coming months. The dollar rallies but is off its highs as investors predict more aggressive Fed rate tightening.

Benchmark yields moved higher as investors pulled out of bonds and rotated into stocks. The ten-year yield soared by 9 basis points today. 

The economic calendar is relatively light today. Fed Chair Powell’s comments about the state of the economy remain in focus. Economists take bets on the Fed’s plan for the next several rate hikes based on current economic conditions.

However, inflation will still be elevated even if the economy slows down. The latest CPI data signaled that rising inflation will still be a lingering concern in the economy. The market is pricing in 50-basis point rate hikes for June, July, and likely for September. 

Technical Analysis

Gold prices face sustained weakness below the 200-day moving average of 1836.92. Downward momentum might send gold prices down towed 1800. Support is seen near the early February 2022 lows near 1811. Resistance is seen at the former support level near the 200-day moving average of 1,836. 

Short-term momentum turns positive as the Fast Stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic prints a reading of 9.91 below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD generates a crossover sell signal. This occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line.

The  MACD (moving average convergence divergence) histogram has a negative trajectory that points to lower prices.

Gold Price Prediction – Gold Prices Face Downward Pressure as the Dollar Rallies 

Key Insights

  • Gold prices fell due to heightened risk-off sentiment. 
  • The latest CPI data indicated that Inflation will remain elevated.
  • Treasury yields pulled back amid the sell-off in equities.

Gold prices face selling pressure as investors pile into the dollar as a safe-haven asset. Hot inflation data generated greater risk-off sentiment in the market. The dollar moves higher as investors pile in for the greenback’s safe-haven appeal.

Benchmark yields moved lower as investors rotated into bonds and sold equities following hot inflation data. The ten-year yield dropped 7 basis points today. 

This week, initial jobless claims rose by 1,000 to 203,000 from last week’s revised level of 202,000. The reading is consistent with the tight labor market. Job openings and quits rates are at a record high as workers are compelled to look for better opportunities. 

The latest CPI data signals that rising inflation is a concern for the Fed. The CPI came in at 8.3%, which was firmer than expected. However, the reading was still below the March reading of 8.5%. The reading supports the Fed’s plan to more aggressively tighten rates due to mounting inflation pressures.

Technical Analysis

Gold prices break below the 200-day moving average of 1836 and face downward pressure that can send gold prices down towed 1800. Support is seen near the 200-day moving average at 1,836. Resistance is seen near the 10-day moving average of 1,874. 

Short-term momentum is negative as the Fast Stochastic generated a crossover sell signal. Prices are oversold as the fast stochastic prints a reading of 9.79 below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD generates a crossover sell signal. This occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line.

The  MACD (moving average convergence divergence) histogram has a negative trajectory that points to lower prices.

USD/CAD Price Prediction – USD/CAD Consolidates Above 1.30 amid a stronger dollar and risk-off sentiment

Key Insights

  • Gold prices traded lower and the dollar strengthened. 
  • Treasury yields eased amid risk-off sentiment and sell-off in equities.
  • Oil prices rose as supply concerns and lockdowns remain in focus.

USD/CAD trades higher and maintains its upward momentum as yesterday’s hot inflation data underpins the dollar. The dollar moves higher as investors pile in for the greenback’s safe-haven appeal.

Benchmark yields moved lower as investors rotated into bonds and sold equities following hot inflation data. The ten-year yield dropped 7 basis points today. 

Gold prices moved lower and faced greater selling pressures as the dollar extends gains. Oil prices increased after volatile trading following uncertainty over Europe’s embargo on Russian oil, supply concerns, and continued lockdowns in China.

This week, initial jobless claims rose by 1,000 to 203,000 from last week’s revised level of 202,000. This reading was the highest since mid-February. The reading is consistent with the tight labor market. Job openings and quits rates are at a record high as workers are compelled to look for better opportunities. 

The latest CPI data indicated that inflation will remain elevated. The CPI came in at 8.3%, which was firmer than expected. However, the reading was still below the March reading of 8.5%. The reading supports the Fed’s plan to more aggressively tighten rates due to mounting inflation pressures.

Technical Analysis

The USD/CAD consolidates above 1.30 as the safe-haven dollar continues to strengthen. The pair is having a bullish break out as a stronger dollar offsets rising oil prices. The prospect of more aggressive Fed rate hikes boosts the dollar.

Resistance is seen near the horizontal trend line near 1.31. Support is seen near the 10-day moving average of 1.29. A pullback to the 10-day moving average is an opportunity for investors to buy the dip.

Short-term momentum turns positive as the fast stochastic might have a crossover buy signal. Medium-term momentum is positive as the MACD line generated a crossover buy signal.

This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day MA of the MACD line). The trajectory of the MACD is in positive territory, which reflects an upward trend in price movement.

Silver Price Prediction – Silver prices stabilize near their lows since July 2020 amid risk-off market sentiment 

Key Insights

  • Silver prices traded lower as inflation data underpins aggressive rate tightening.
  • Treasury yields eased amid risk-off sentiment and sell-off in equities.
  • Oil prices rose on Thursday in volatile trading as supply concerns remain in focus.

Silver prices consolidate lower as Treasury yields and riskier assets fall. The dollar hits two-year highs as fearful investors pile in for the greenback’s safe-haven appeal. Benchmark yields pulled back as investors rotated into bonds as the selling of equities continued due to rising inflation pressures.

The ten-year yield dropped 7 basis points today. Gold prices moved lower amid greater selling pressures as the dollar extends gains. Oil prices whipsawed this week, rising on Thursday due to geopolitical tensions regarding the embargo on Russian oil, supply, concerns, and continued lockdowns in China.

Initial jobless claims for last week increased to 203,000 from the revised level of 202,000 from the previous week. This reading was the highest since mid-February.

The reading is consistent with the tight labor market as job openings and quits rates are at a record high. The tight labor market has compelled workers to look for better opportunities. 

Inflation is not going away quickly. While the CPI coming in at 8.3% was firmer than expected, the reading was still below the March reading of 8.5%. The reading supports the Fed’s plan to more aggressively tighten rates due to mounting inflation pressures.

Technical Analysis

Silver prices traded below the $21 level amid heightened risk-off sentiment and greater concerns over inflation. The continued break below the $22 mark indicates a downtrend in momentum favoring bearish traders. Further downside for XAG/USD is likely.

The metal is on track to see additional losses near the $21 level and head to the key psychological mark of $20.

Support is seen near the 2019 lows near the $19.60s region. Resistance is seen near the 10-day moving average near the 10-day moving average of 22.14. Short-term momentum is negative as the fast stochastic had a crossover sell signal.

The medium-term momentum turned negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.

Natural Gas Price Prediction – Prices Rally on Strong Inventory Report

Key Insights

  • Natural gas continues in a positive uptrend.
  • The weather is expected to be warmer than usual throughout the South.
  • Natural gas inventories rose this week.

Natural gas prices sustained upward momentum on Thursday for the third trading session in a row. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days and 8-14 days throughout most of the South. Temperatures have been cooler in the Northwest. Inventories rose in the latest week.

According to the EIA Natural Gas Storage Report that was released on Thursday, working gas storage rose by 76 Bcf from 1,567 Bcf to 1,643 Bcf. Expectations were for natural gas inventories to rise by 66 Bcf in the latest week.

Technical Analysis

On Thursday, natural gas prices tested the 10-day moving average near 7.766, extending gains for the third consecutive trading session. Target resistance is seen near the May highs at $8.99.

Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. However, momentum is decelerating. 

Medium-term momentum has turned negative. The MACD (moving average convergence divergence) generated a crossover sell signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.

USD/CAD Exchange Rate Prediction – The Dollar Eases Despite Robust Inflation

Key Insights

  • The dollar eased, giving back recent gains.
  • Treasury yields pulled back due despite strong inflation data.
  • Oil prices jumped, helping to buoy the Loonie.

USD/CAD moved lower on Wednesday as the dollar eased against most major currencies. Benchmark yields dropped today despite a stronger than expected CPI report that showed month-over-month gains that were stronger than expected. Oil prices moved higher following Wednesday’s inventory report, which showed strong gasoline demand.

The U.S. Labor Department released April CPI on Wednesday. The headline CPI came in at 8.3%, slightly less than March but more than the 8.1% expected by economists. The report also showed that core CPI, excluding food and energy, increased by 6.2% year over year, higher than expected. The month-over-month gains also were higher than expectations.

The BLS reported that April inflatino rose  0.3% on headline CPI versus the 0.2% estimate and a 0.6% increase for core, against a 0.4% gain outlook.

Technical Analysis

The USD/CAD pulled back on Tuesday after breaking out to fresh highs. The exchange rate pulled back to support near former resistance at the December highs at 1.2964. Resistance is seen near the horizontal trend line near 1.30. The 20-day moving average crossed above the 50-day moving average, which means a medium-term uptrend is now in place.

Short-term momentum turns negative as the fast stochastic might have a crossover sell signal. The exchange rate is overbought as the fast stochastic is printing a reading of 84, above the overbought trigger level of 80. Medium-term momentum is positive as the MACD line generated a crossover buy signal.

This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day MA of the MACD line). The trajectory of the MACD is in positive territory, which reflects an upward trend in price movement.

Silver Price Prediction – Silver Rallied on Dollar Weakness

Key Insights

  • Silver prices rebounded after breaking down on Tuesday.
  • Treasury yields pulled back despite a robust CPI print.
  • U.S. Treasury yields whipsawed and then moved lower.

Silver prices rose on Wednesday and the rest of the precious metals complex. The dollar edged lower as yields declined. Despite a stronger-than-expected headline and core CPI report, Benchmark yields eased today. Gold prices strengthened as the dollar eased.

CPI Rose More than Expected

The U.S. Labor Department released April CPI on Wednesday. The headline CPI came in at 8.3%, slightly less than March but more than the 8.1% expected by economists. The report also showed that core CPI, excluding food and energy, increased by 6.2% year over year, higher than expected. The month-over-month gains also were higher than expectations. The BLS reported that April inflatino rose  0.3% on headline CPI versus the 0.2% estimate and a 0.6% increase for core, against a 0.4% gain outlook.

Technical Analysis

Silver prices rebounded after breaking down, recapturing short-term support near the September lows at 21.42.

Resistance is seen near the 20-day moving average of 23.52. The 20-day moving average crossed below the 50-day moving average, which means a medium-term downtrend is now in place. Short-term momentum has turned positive as the fast stochastic crossover buy signal. Prices are oversold as the fast stochastic is printing a reading of 13 below the oversold trigger level of 20.

The medium-term momentum turned negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.

Natural Gas Price Prediction – Prices Rise on Strong EIA Outlook

Key Insights

  • Natural gas rallied sharply.
  • The weather is expected to be warmer than usual throughout the South.
  • Inventories are expected to rise.

Natural gas prices rebounded sharply on Wednesday for a second straight trading session. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days throughout most of the South. Inventories are expected to rise in the latest week.

According to survey provider Estimize, natural gas inventories are expected to rise by 66 Bcf in the latest week. The release follows 55 Bcf build-in stockpiles. The EIA reported in its short-term energy outlook that natural gas prices should average $8.4 per MMBtu for 2022.

Technical Analysis

On Wednesday, natural gas prices rebounded sharply, rallying for the second consecutive trading session. Prices recaptured resistance which now supports near the 20-day moving average at 7.32. Target resistance is seen near the May highs at $8.99.

Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.

Medium-term momentum has turned negative. The MACD (moving average convergence divergence) generated a crossover sell signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices.

Gold Price Prediction – Prices Rise as Yields Slip Despite Robust CPI

Key Insights

    • Gold prices rebound despite strong CPI. 
    • Core inflation rose more than expected.
    • Treasury yields whipsawed, initially moving higher and then retreating.

Gold prices rebounded from a critical support level. The dollar fell against other major currencies, despite a stronger than an expected consumer price index. Benchmark yields pulled back today after initially rising following the month-over-month gains in CPI.

Inflation in the U.S. Remain Elevated

The U.S. Labor Department released April CPI on Wednesday. The report comes in the wake of last week’s rate hike by the Federal Reserve.

The headline CPI came in at 8.3%, slightly less than March but more than the 8.1% expected by economists. The report also showed that core CPI, excluding food and energy, increased by 6.2% year over year, higher than expected.

Technical Analysis

Gold prices moved higher, holding just above support near the 200-day moving average at 1,835. Resistance is seen near the 20-day moving average of 1,905. The 20-day moving average crossed below the 50-day moving average, which means a medium-term downtrend is in place.

Short-term momentum has turned positive as the Fast Stochastic generated a crossover buy signal. Prices are oversold as the fast stochastic prints a reading of 16 below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD generates a crossover sell signal. This occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line.

The  MACD (moving average convergence divergence) histogram has a negative trajectory that points to lower prices.

USD/CAD Price Prediction – USD/CAD Trades Above 1.30 as the dollar holds firm and oil prices fall

Key Insights

  • Gold prices hold steady as the dollar declined slightly. 
  • Treasury yields pulled back due to concerns over inflation and slower growth.
  • Oil prices plummet amid demand concerns in China and weaker economic growth.

USD/CAD sustains its upward trajectory, hitting a high of 1.30 for the first time since November 2020. The dollar slightly fell against other major currencies.

Benchmark yields dropped today as the Fed was less aggressive than the market priced in. The ten-year yield dipped below 3% today after being up 23 basis points yesterday. 

Gold prices became firmer as the dollar edged lower. Investors purchased gold ahead of US inflation data that could impact the Fed’s monetary policy. Oil prices continue to face downward pressure amid China’s lockdowns.

A stronger dollar also makes oil more expensive to investors in other currencies. The embargo on Russian oil has been delayed as Eastern European members have asked for exemptions and concessions.

The NFIB Small Business Economic Trends came in at 93.2, which was the same as the previous month. This reading, which indicates US small business confidence, was below the 48-year average of 98. Small businesses struggle to deal with mounting inflation pressures. Rising labor costs and a labor shortage increase their economic struggles.

Inflation data that will be released on Wednesday will likely impact the Fed policy decision at the next meeting.

Technical Analysis

The USD/CAD sustains positive momentum and continues to extend gains. The pair is having a bullish breakout, hitting the key level of 1.30.

Resistance is seen near the horizontal trend line near 1.30. Support is seen near the 10-day moving average of 1.287. A pullback to the 10-day moving average is an opportunity for investors to buy the dip.

Short-term momentum turns negative as the fast stochastic might have a crossover sell signal. Medium-term momentum is positive as the MACD line generated a crossover buy signal.

This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day MA of the MACD line). The trajectory of the MACD is in positive territory, which reflects an upward trend in price movement.

Silver Price Prediction – Silver prices remain little changed ahead of the key inflation reading

Key Insights

  • Silver prices stabilized as benchmark yields dipped ahead of inflation data.
  • Treasury yields pulled back amid rising inflation and slower growth.
  • Oil prices continued to fall amid demand concerns in China and weaker economic growth.

Silver prices held steady as the dollar eased and yields fell sharply. The dollar edged lower against other major currencies. Benchmark yields eased today in the wake of the FOMC meeting as the Fed was less aggressive than the market priced in. The ten-year yield dipped below 3% after being up 23 basis points yesterday. 

Gold prices strengthened as the dollar eased. Investors bought gold as US inflation data released tomorrow could impact the Fed’s monetary policy. Oil prices continue to face downward pressure amid China’s lockdowns and a stronger dollar that made oil more expensive to holders in other currencies.

The embargo on Russian oil has been delayed as Eastern European members have asked for exemptions and concessions.

The NFIB Small Business Economic Trends came in at 93.2, which was the same as the previous month. This reading, which indicates US small business confidence, was below the 48-year average of 98.

This data signals that small businesses are struggling to deal with mounting inflation pressures. Small businesses are dealing with rising labor costs and a labor shortage, increasing their economic struggles.

Inflation data that will be released on Wednesday will likely impact the Fed policy decision at the next meeting.

Technical Analysis

Silver prices remain below the $22 level. A sustained break below the $22 mark will signal further downside and favor bearish traders for AG/USD. Further selling may lead silver to test the December low near $21.40.

The metal is on track to see additional losses near the $21 level and head to the key psychological mark of $20.

Support is seen near the December 15th low of 21.49. Resistance is seen near the 10-day moving average near the 10-day moving average of 22.57. Short-term momentum is negative as the fast stochastic had a crossover sell signal.

The medium-term momentum turned negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.

Gold Price Prediction – Gold Prices Stabilized as the Dollar Rally Paused 

Key Insights

    • Gold prices hold steady as the dollar edged lower. 
    • The NFIB Small Business Economic Trends was below the 48-year average of 98.
    • Treasury yields pulled back amid concerns over  inflation and slower growth.

Gold prices remain little changed as investors bought gold ahead of tomorrow’s inflation report that might impact the Fed’s monetary policy. The dollar fell against other major currencies.

Benchmark yields pulled back today in the wake of the Fed’s less aggressive policy. The ten-year yield dipped below 3% today after extending gains by 23 basis points yesterday. 

The NFIB Small Business Economic Trends came in at 93.2, which was the same as the previous month. This reading, which indicates US small business confidence, was below the 48-year average of 98.

This data signals that small businesses are struggling to deal with mounting inflation pressures. Small businesses are dealing with rising labor costs and a labor shortage, increasing their economic struggles.

Tomorrow’s Inflation report will likely impact the Fed policy decision at the next meeting.

Technical Analysis

Gold prices head toward the 200-day moving average of 1836 and face downward pressure that can send gold prices down towed 1800. Support is seen near the 200-day moving average at 1,836. Resistance is seen near the 10-day moving average near 1,874. 

Short-term momentum is negative as the Fast Stochastic generated a crossover sell signal. Prices are oversold as the fast stochastic prints a reading of 9.79 below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD generates a crossover sell signal. This occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line.

The  MACD (moving average convergence divergence) histogram has a negative trajectory that points to lower prices.

Natural Gas Price Prediction – Prices Rebounded and Settle Near Highs

Key Insights

  • Natural gas dropped sharply.
  • The weather is expected to be warmer than usually throughout the South.
  • U.S. Natural Gas Supply was flat this week.

Natural gas prices rebounded sharply and settled near the highs of the trading session. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days throughout most of the South. Natural gas demand was mixed last week.

  U.S. natural gas demand was mixed last week. According to the EIA, total U.S. consumption of natural gas rose by 1.0% compared with the previous report week, led by a 3.9% increase in natural gas consumed for power generation. Industrial sector consumption of natural gas decreased by 0.7%, and consumption in the residential and commercial sectors decreased by 1.6%.

Technical Analysis

On Tuesday, natural gas prices rebounded sharply after falling 11% on Monday. Prices slid another 8% before recovering to close the session up 3.6%. Resistance near the 20-day moving average at 7.32. Target support is seen near the 50-day moving average at 6.07.

Medium-term momentum has turned negative. The MACD (moving average convergence divergence) generated a crossover sell signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Silver Price Prediction – Silver prices slid sharply as the dollar rises

Key Insights

  • Silver prices fall as yields surged.
  • Treasury yields climb to the highest levels since 2018.
  • Oil prices tumbled amid stronger dollar and demand concerns in China. 

Silver prices pull back sharply as yields and the dollar extend gains. The dollar rose against other major currencies. Benchmark yields continue to soar due to growing concerns about spiraling inflation and slower economic growth. The ten-year treasury yield rallied to 3.185% in the wake of the Fed tightening rates. 

Gold prices fall as the dollar strengthens. Oil prices were weighed down by a stronger dollar and demand concerns amid China’s lockdowns. A pledge by the G7 nations to ban or phase out Russian oil followed the EU’s proposal for phased sanctions on Russian oil.

US wholesale inventories increased by 2.3% in March compared to the previous month, which was in line with economists’ expectations. Wholesale inventories increased 22% year-over-year. Inventories are a part of gross domestic product and go into the GDP calculation. 

Inflation data that will be released on Wednesday will likely signal the size of the Fed’s next move. 

Technical Analysis

Silver prices fell to their year-to-date low below the $22 level. A sustained break below the $22 mark will signal further downside and selling pressure for XAG/USD. Silver may test the December low near $21.40. below the $23.00 level despite the Fed’s less aggressive monetary policy.

Despite that ruling out a 75-basis point hike removed greater downside to precious metals, the Fed’s goal to reduce inflation weighs on silver prices.  

Support is seen near the February 3rd low of $22.0. Resistance is seen near the 10-day moving average of 23.77. Short-term momentum is negative as the fast stochastic had a crossover sell signal.

The medium-term momentum turned negative as the histogram prints negatively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is in negative territory, which reflects the downward trend in price movement.

USD/CAD Price Prediction – USD/CAD Continues Gains Upward Traction amid Falling Oil Prices and Stronger Dollar

Key Insights

  • Gold prices fell as the dollar rose. 
  • Treasury yields climb to the highest levels since 2018.
  • Oil prices tumbled amid stronger dollar and demand concerns in China. 

USD/CAD maintains positive momentum as a stronger dollar acts as a tailwind for the currency pair. The dollar moved higher against other major currencies.

Benchmark yields surged amid concerns of rising inflation and declining economic growth. The ten-year treasury yield rallied to 3.185% in the wake of the Fed tightening rates. 

Gold prices moved lower as the dollar strengthens. Oil prices tumbled due to a stronger dollar and demand concerns amid China’s lockdowns. A pledge by the G7 nations to ban or phase out Russian oil followed the EU’s proposal for phased sanctions on Russian oil.

US wholesale inventories increased by 2.3% in March compared to the previous month, which was in line with economists’ expectations. Wholesale inventories increased 22% year-over-year. Inventories are a part of gross domestic product and go into the GDP calculation. 

Inflation data that will be released on Wednesday will likely signal the size of the Fed’s next move. 

Technical Analysis

The USD/CAD sustains positive momentum, hitting a year-to-date high of 1.296. The pair is having a bullish break out as it pushes toward the key 1.30 level. Investors might see a pullback as an opportunity to buy the dip. 

 Resistance is seen near the key level of 1.30. Support is seen near the 10-day moving average of 1.284. A pullback to the 10-day moving average is an opportunity for investors to buy the dip.

Short-term momentum turns negative as the fast stochastic might have a crossover sell signal. Medium-term momentum is positive as the MACD line generated a crossover buy signal.

This scenario happens when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day MA of the MACD line). The trajectory of the MACD is in positive territory, which reflects an upward trend in price movement.

Gold Price Prediction – Gold Prices Dropped Sharply as Yields Rise

Key Insights

  • Gold prices fell as the dollar rose. 
  • US wholesale inventories increased by 2.3% in March.
  • Treasury yields climb to the highest levels since 2018.

Gold prices fell despite spiraling inflation and declining economic growth. The dollar rose against other major currencies. Benchmark yields continue to soar as the ten-year treasury yield rallied to 3.185% in the wake of the Fed tightening rates. 

US wholesale inventories rose 2.3% in March compared to the previous month, which was in line with economists’ expectations. Wholesale inventories increased 22% year-over-year. Inventories are a part of gross domestic product and go into the GDP calculation. 

Inflation data that will be released on Wednesday will likely signal the size of the Fed’s next move. 

Technical Analysis

Gold prices faced downward pressure and are on track to break below the 200-day moving average of 1836. Support is seen near the 200-day moving average at 1,836. Resistance is seen near the 10-day moving average of 1,882. 

Short-term momentum is negative as the Fast Stochastic generated a crossover sell signal. Prices are oversold as the fast stochastic prints a reading of 13.5 below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD generates a crossover sell signal. This occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line. The  MACD (moving average convergence divergence) histogram has a negative trajectory that points to lower prices.

Natural Gas Price Prediction – Prices Drop on Warm Weather Forecast

Key Insights

  • Natural gas dropped sharply.
  • The weather is expected to be warmer than normal.
  • U.S. Natural Gas Supply was flat this week.

Natural gas prices tumbled on Monday after hitting 13-year highs late last week. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal during the next 6-10 days. Natural gas supplies were unchanged week over week.

According to the Energy Information Administration, U.S. natural gas supply is essentially unchanged week over week. The average total supply of natural gas rose by 0.1% week over week. The small increase resulted from slightly higher domestic dry natural gas production, while average net imports from Canada were flat.

Technical Analysis

On Monday, natural gas prices tumbled, dropping more than 11%. Prices slid through former support, which is now resistance near the 20-day moving average at 7.29. Target support is seen near the 50-day moving average at 6.01.

Medium-term momentum has turned negative. The MACD (moving average convergence divergence) generated a crossover sell signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

The MACD histogram is printing in negative territory with a downward sloping trajectory which points to lower prices. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal.

Gold Prices Reversed after Rallying on Wednesday 

Key Insights

  • Gold prices pulled back after yesterday’s rally.
  • Fed Chair Powell states that 75-basis point hike is unlikely.
  • Treasury yields surge to four-year highs following the FOMC meeting.

Gold prices retreated despite their short-term rally. The dollar recovered after facing steep losses yesterday. Benchmark yields extended gains after the 50-basis point rate hike. The ten-year treasury yield rallied to 3.09% following the FOMC meeting. 

The FOMC hiked rates by 50-basis points at the meeting on Wednesday, but Fed Chair Powell made clear that a 75-basis point move was unlikely at the next meeting.

This caused the dollar to ease, while bond yields extended gains. However, Powell stated that the main goal is to rein in inflation, which gives the dollar and yields greater upside momentum. 

Initial jobless claims rose to 200,000 from the previous 181,000. Productivity fell by 7.5% in the first quarter. However, a tightening labor market will keep inflation elevated.

Technical Analysis

Gold prices retreated following the Fed decision and face selling pressure amid risk-on market sentiment. Support is seen near the 200-day moving average at 1,836. Resistance is seen near the 10-day moving average eat 1,889.

The 20-day moving average has crossed below the 50-day moving average, which means a medium-term downtrend is now in place.

Short-term momentum turns negative as the Fast Stochastic might generate a crossover sell signal. Prices are oversold as the fast stochastic prints a reading of 16 below the oversold trigger level of 20.

Medium-term momentum has turned negative as the MACD generates a crossover sell signal. This situation occurs as the 12-day moving average minus the 26-day moving average crosses below the 9-day moving average of the MACD line.

The  MACD (moving average convergence divergence) histogram has a negative trajectory that points to lower prices.