Natural Gas Daily Fundamental Analysis Natural gas prices rose back on Friday amid expectations of a new heat wave, which is expected to increase demand for power-plant fuel, noting that above than average weather conditions have been the main reason behind rising natural gas prices over the past three weeks. Natural gas prices will probably rise over the upcoming period, since expectations of warmer than average weather conditions will continue to boost speculations of rising demand for power-plant fuel, and that should provide natural gas prices with upside momentum. Crude Oil Daily Fundamental Analysis Crude oil prices dropped back below $100 on Friday, as news emerged that Saudi Arabia is planning to increase its oil production, which put downward pressure on prices, while concerns in financial markets over the outlook for global growth also added negative pressure on crude oil prices, which sent crude oil prices tumbling below $100 a barrel. We expect crude oil prices to continue trading within a limited range on Monday, where a lack of economic data should keep trading ranges limited, however, we still believe crude oil prices will drop over the short term on concerns over the outlook for growth in major global economies including the United States economy. Gold Daily Fundamental Analysis Gold ended last week on Friday after heavy volatility and strong fluctuations with the uncertainty over the outlook for the global recovery. More slowing signs of growth are seen across the globe and fear of rising inflation is adding more downside pressure on the recovery projections. Gold will remain affected with the start of the week by the heavy pessimism in the market that is supporting haven low yielding currencies and keeping investors cautious regarding commodities. Gold might correct some of the heavy losses but remains subject to high volatility on the back of the dollar’s reversal of the losses. Fears of rising energy and food prices, uncertainty over growth, and the debt crisis in Europe are all upside support for gold yet the short term volatility is merely normal amid the high uncertainty in the market. Gold is to continue fluctuating heavily this week with the pessimism in the market, yet the upside support for the metal remain seen especially with now drought fears rising and pushing corn and wheat prices more to the upside which will add more hedge demand on gold and help its overall bullish appeal.

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