Gold and silver recover off the lows while oil dips

Range-bound movement in oil has resulted in traders range-trading the band, and easily causing a shift in bias as a result.

Gold Technical analysis, overview, strategies, and levels

While most of gold's main technical indicators are neutral at the daily level, the precious metal's price is torn between multiple factors at play. On the one hand, central banks are in a wait-and-see mode with equities making fresh highs and hence interest rates may not fall further. But on the other, uncertainty and geopolitical tensions persist. That has made for mostly consolidatory intraday sessions, with a few days where prices go beyond its main pivot points.

IG client and CoT sentiment for Gold

Both retail and institutional traders hold heavy to extreme long bias, but for the former it has dropped 4% yesterday alone to 74% as the brief squeeze lower followed by the price move higher enticed shorts into entering.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

In terms of performance, silver's price slightly outperformed in percentage terms compared to gold, but where both continued to suffer from negative bias as equities make fresh record highs, pushing its price lower initially in yesterday’s session. A higher finish hasn't changed its technical overview just yet however, as with most of its main indicators neutral and few days causing shifts and the rest in oscillation.

IG client and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Will it or won't it has been the question for oil, as the energy commodity's price has continued to remain relatively range-bound, and testing trend traders heavily. In terms of data, API (American Petroleum Institute) will be releasing its figure in terms of US weekly oil stock changes over the next 24 hours and has a tendency to result in late volatility upon its release. Geopolitical tensions have risen this morning but have failed to translate into price gains just yet.

IG client and CoT sentiment for Oil WTI

Slow price movement and days in oscillation usually point to an eventual breakout that could trap traders on the wrong side of the trade, though thus far it’s been a consistent extreme long bias amongst institutional traders and retail traders’ range-trading the narrow price movement. The net result for retail bias is a shift from yesterday’s majority short 56% to a majority long 61% this morning.

Oil WTI chart with retail and institutional sentiment

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