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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Gold and silver recover off the lows while oil dips

Long positions in precious metals continue to get tested while retail traders range-trading the energy commodity.

Silver Source: Bloomberg

Gold Technical analysis, overview, strategies, and levels

Despite retracing off the lows, the mood has certainly turned sour for the precious metal, as fresh highs in equities – even if intraday – has meant that the precious metal's price was in for an early move lower and keeping the pair’s technicals showing negative bias. That has come at the expense of extreme long retail and institutional traders, with the former unable to make much of yesterday’s gains given nearly all of those longs were initiated at higher price levels, and as a result keeping majority long bias at an extreme 78%.

Gold Technical Indicators Source: IG charts
Gold Technical Indicators Source: IG charts

IG client and CoT sentiment for Gold

Gold sentiment Source: IG charts
Gold sentiment Source: IG charts

Gold chart with retail and institutional sentiment

Gold Source: IG charts
Gold Source: IG charts

Silver Technical analysis, overview, strategies, and levels

While gold and silver tend to move in relatively similar fashion, the early plummet that has been occurring in gold's price has meant that the gold-silver spread has been declining to lows unseen since August before retracing back up later in the session. The moves here have also been in line with its current consolidatory technical overview that’s showing negative bias following last week’s plummet.

Silver Technical Indicators Source: IG charts
Silver Technical Indicators Source: IG charts

IG client and CoT sentiment for Silver

In terms of sentiment, there’s been little change with retail traders still holding an extreme long bias albeit a notch higher at 91%.

Silver sentiment Source: IG charts
Silver sentiment Source: IG charts

Silver chart with retail and institutional sentiment

Silver Source: IG charts
Silver Source: IG charts

Oil WTI Technical analysis, overview, strategies, and levels

When equities made fresh highs, the mood turned more positive for commodities, but where once again oil has failed to outperform, and once again failing to close above its 200-day moving average even though it crossed above it again. We’ll finally get some oil data this evening with American Petrol Institute (API) releasing its estimate tonight before EIA’s (Energy Information Administration) more encompassing estimate tomorrow.

Oil Technical Indicators Source: IG charts
Oil Technical Indicators Source: IG charts

IG client and CoT sentiment for Oil WTI

Retail traders have been range-trading the energy commodity, and as a result, the price drop has pushed majority long bias 3% higher to 55%.

Oil sentiment Source: IG charts
Oil sentiment Source: IG charts

Oil WTI chart with retail and institutional sentiment

Oil Source: IG charts
Oil Source: IG charts
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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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