Natural Gas Prices Rises 7% and Gold Could Continue Skywards
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Gas rose nearly 7 percent in recent CFD trading activity, as forecasts for cooler US weather in the coming weeks reminded traders that winter was just ahead. In addition, most Contracts for Difference traders noted the much smaller-than-expected build to winter inventories and strength in other energy markets as helping to aid momentum to the […]
In addition, most Contracts for Difference traders noted the much smaller-than-expected build to winter inventories and strength in other energy markets as helping to aid momentum to the upside.
In a recent report the US Energy Information Administration on gas storage showed that winter inventories rose to a record high of 3.852 trillion cubic feet.
The injection put storage at a 23 bcf surplus to year-ago stocks and widened the surplus to the five-year average to 233 bcf, or more than 6 percent.
With more mild autumn weather, traders expect at least one or possibly two more builds to the already record-high inventories. Early injection estimates for the coming EIA storage data range from 7 bcf to 31 bcf versus a year-ago draw of 21 bcf and a five-year average decline of 29 bcf.
Elsewhere in commodities, the gold market is on the move. According to a City Index CFD trading report, “Gold bullion prices have also hit a short term ‘decision time’ level & we could possibly see prices resume their upwards march. With no shortage of instability, commodities have provided good short term trades. Gold bullion is back at a price support mark of $1,680, which might provide a platform for higher prices. For the near term the commodity will need to clear & sustain $1,715 to then head for $1,730, followed by $1,785 in the coming weeks.
“Once these levels are cleared we could well see $1,890 act as the key objective once again. Nevertheless a failure to hold $1680 could possibly take the yellow metal down closer to the $1,550 – $1,500 level before attempting to find additional price support.”
CFT trading is a geared product, it involves a high level of risk to your capital and you can lose more than your investment. Ensure that trading CFDs matches your trading objectives as it may not be suitable for all types of investor. Make sure that you fully appreciate the risks that are involved. Always ensure that you only speculate with money you can afford to lose. If necessary seek independent advice.
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