New 52-week Low for the U.S. Natural Gas Fund (UNG)

Today natural gas prices hit a 2010 low as the contract for September delivery per 1,000 cubic feet struck $3.79.  Right along with it the United States Natural Gas Fund, LP (NYSE:UNG) hit $6.40 a share, a new 52-week low for the heavily played ETF.

New lows for the UNG and natural gas prices came after Big Brother (the U.S. Government) reported a rise in U.S. supplies.

U.S. Natural Gas Fund (UNG) shares have traded between $6.40 and $12.22 over the past 12 months.  The UNG has gained 7 cents since hitting that new low this morning, hanging out around $6.47 per share and trading on huge volume (already passed 15 million shares).

(AP News)

The price of natural gas, which is used to produce electricity, tends to drop this time of year as the weather begins to cool and people turn off their air conditioners. Analysts said natural gas contracts should continue to fall over the next few months, and that should eventually push down energy costs for homes and businesses.

Natural gas prices typically rise again as winter approaches and home owners crank up the heat. But overall, PFGBest analyst Phil Flynn said natural gas should become cheaper as drillers tap into larger sections of underground shale. America's vast natural-gas shale deposits are just beginning to be exploited, and the industry is expected to produce much more in coming years.

Mastery, truth be told, natural gas prices could still come under pressure but any time you can buy at the bottom and hold on, the risk may be worth it.

Mastery Sponsors - Become one Today