Natural Gas Daily Fundamental Analysis
After falling on Monday, natural gas prices extended their drop on Tuesday, where expectations of moderating weather conditions in the Midwest of the United States boosted speculations of lower demand for power-plant fuel.
Expectations of milder weather conditions towards the end of this month and early in August should put natural gas prices under pressure, since it will lead to speculations of faling demand for power-plant fuel.
Crude Oil Daily Fundamental Analysis
Crude oil prices were little changed on Tuesday after some noticeable fluctuations earlier in the day, where pessimism continued to dominate markets, since U.S. lawmakers failed to reach an agreement to raise the debt ceiling ahead of an August 2 deadline after which the United States will default on its debt payments, which kept investors on their toes, and drove them away from risky assets, which put negative pressure on crude oil prices, yet the weakness of the U.S. dollar limited losses for crude oil prices.
Traders will be focused on the latest developments in the United States regarding the debt ceiling deal, as the negotiations in Washington will remain the main focus for now, and if lawmakers fail to reach an agreement, we should expect crude oil prices to drop further. The EIA report will also play a role in determining prices on Wednesday, where crude oil inventories are expected to drop by 2.0 million barrels.
Wednesday July 27:
The United States will start with the Durable Goods Orders for June at 12:30 GMT, orders are expected with 0.3% rise following 1.9% rise and excluding transportation to rise by 0.6% easing from 1.9% rise in May.
At 14:30 GMT, the EIA report for crude oil inventories will be released for the week ending July 22, where last week crude oil inventories decreased by 3.7 million barrels, and Wednesday’s report is expected to show crude oil inventories decreased by 2.0 million barrels.
At 18:00 GMT we have the Fed’s Beige Book to detail the latest developments across the U.S. districts and prepare the markets for the coming FOMC and whether the slowing recovery will prompt the Federal Reserve to start further monetary stimulus to support growth.
Gold Daily Fundamental Analysis
Gold prices were slightly lower on Tuesday, as investors locked in their profits after gold prices hit a record high on Monday, however, gold prices remained supported as U.S. lawmakers failed to reach an agreement to raise the debt ceiling, which maintained the pressure on the U.S. dollar, and accordingly, gold prices remained well above $1600 an ounce.
Traders continue to target gold as a safe haven, especially since they doubt U.S. lawmakers will be able to reach a compromise deal to raise the debt ceiling and reduce the deficit before an August 2, deadline set by the U.S. Treasury Department, and so long as pessimism continues in markets, we should expect gold prices to gain more bullish momentum.
