Natural Gas Gains on Supply Concerns While Gold Rallies Amid Global Turmoil

Energy markets saw a decoupling of oil and gas prices on Monday. West Texas Intermediate (WTI) crude oil edged up 0.30% to $80.58 per barrel, while Brent crude rose to $84.03. The modest gains in oil were supported by renewed optimism regarding Iran talks and a general lift in risk sentiment across global markets. However, the gains were capped by technical resistance and ongoing concerns about global demand.

In contrast, U.S. natural gas futures saw more significant movement as the September contract became the new front month. Natural gas prices gained support from the latest storage data, which showed a smaller-than-expected build in inventories. This has raised concerns about supply levels heading into the winter heating season, especially as heatwaves across parts of the U.S. drive up demand for electricity to power air conditioning.

Gold also saw a technical rebound, rising 0.80% to $4,123.20 per ounce. The precious metal is benefiting from a combination of Middle East turmoil and investors positioning themselves ahead of U.S. jobs data. Analysts note that while gold remains a preferred hedge against geopolitical risk, its performance in the coming weeks will likely be dictated by the dollar’s strength and the Federal Reserve’s trajectory on interest rates.