At 13:47 GMT, Natural Gas Futures are trading $3.832, down $0.113 or -2.86%.

Is Weather Demand Losing Its Grip on Prices?

The latest outlook from NatGasWeather forecasts Arctic air to maintain strong natural gas demand through Friday, with subzero temperatures blanketing much of the interior U.S. and lows reaching the teens across the South. However, this demand will ease heading into the weekend as milder temperatures settle over the southern and eastern U.S., with highs climbing into the 40s-60s and even 70s in parts of Texas.

Looking further ahead, the weather pattern for early February appears less supportive, with mild conditions dominating key consuming regions. While frosty air will persist in the northern Rockies and Plains, it will not extend far enough south to drive significant demand. This milder outlook is weighing heavily on the market, keeping bullish sentiment in check despite a notable surplus-to-deficit shift in inventory balances this week.

Storage Report Undermines Bullish Momentum

The EIA’s latest storage report showed a draw of 223 Bcf for the week ending January 17, bringing total inventories to 2,892 Bcf. While this was 57 Bcf lower than the same time last year, it remained 21 Bcf above the five-year average of 2,871 Bcf.

Traders interpreted the smaller withdrawal as a sign of improving supply dynamics, especially as Lower 48 production remains robust. Meanwhile, easing heating demand is expected to prevent significant inventory depletion, keeping storage levels within the five-year historical range. These factors are adding downward pressure to prices and tempering bullish sentiment.

Market Forecast: Bearish Near-Term Outlook

With forecasts pointing to milder weather across key regions and storage data reflecting improving supply conditions, natural gas prices are likely to face further downside in the near term.

Ethereum price (ETHUSD) shows positive trades after testing 3222.00$ in the previous sessions, to support the continuation of the expected bullish trend on the intraday and short-term basis, waiting to visit 3425.50$ initially, noting that breaching this level will extend the bullish to reach 3678.00$ areas.

Holding above 3222.00$ is important to the continuation of the bullish trend, as breaking it represents the key to turn to decline to achieve additional bearish correction that its next target reaches 3017.30$ areas.

The expected trading range for today is between 3170.00$ support and 3450.00$ resistance.

Trend forecast: Bullish

The EURJPY pair failed to record any new positive target due to the continuous fluctuation below the additional resistance at 163.25, to notice forming mixed trades now by crawling towards 161.90 followed by settling near the MA55.

We expect to confine trades between the mentioned resistance and the additional support at 161.80, to stay neutral and wait to surpass one of the mentioned levels to manage to detect the next near-term and medium-term trend.

The expected trading range for today is between 161.80 and 163.25

Trend forecast: Neutral

• Silver price advanced as President Trump expressed his desire for the US Federal Reserve (Fed) to lower interest rates without delay.
• Trump stated that he “would rather not have to use tariffs on China” and is hopeful about reaching a deal.
• The demand for the precious Silver increases due to weaker US Dollar and Treasury yields.

Silver price (XAG/USD) recovers its recent losses, trading around $30.80 per troy ounce during the Asian trading session on Friday. The demand for non-interest-bearing Silver rises following comments made by US President Donald Trump late Thursday.

Trump expressed his desire for the US Federal Reserve (Fed) to lower interest rates without delay. “With Oil prices falling, I’ll demand that interest rates be cut immediately, and they should be reduced worldwide,” he said during the World Economic Forum in Davos, Switzerland.

Additionally, industrial demand for Silver may have strengthened following US President Donald Trump’s comments about his preference to avoid tariffs on China, the world’s largest consumer of metals and a manufacturing hub. Trump expressed optimism about reaching a deal with China after a conversation with President Xi Jinping on Thursday, suggesting potential progress in US-China trade negotiations.

Traders are likely to continue turning to safe-haven assets like Silver, remaining cautious amid uncertainty surrounding the impact of Trump’s proposed tariffs and immigration policies. On Tuesday, Trump also announced plans to impose a 25% tariff on imports from Canada and Mexico, along with duties on the European Union.

The US Dollar Index (DXY), which measures the US Dollar’s performance against six major currencies, continues to decline as US Treasury yields depreciate amid improved risk sentiment. The DXY has fallen below 107.00, with the 2-year and 10-year US Treasury yields standing at 4.26% and 4.63%, respectively, at the time of writing. This shift could be contributing to the uptrend in non-yielding metals like Silver, which are seeing increased appeal.

Natural gas price kept its stability within the bullish channel that its major support line located at 3.680$, to notice renewing the positive action by targeting 4.030$ barrier now, which formed the first target for the recent bullish overview.

Now, stochastic exit from the oversold areas will reinforce the chances of gathering the positive momentum to manage to surpass the current barrier and achieve additional gains by rallying towards 4.220$ followed by reaching the bullish channel’s resistance line at 4.420$.

The expected trading range for today is between 3.920$ and 4.220$

Trend forecast: Bullish