Gold, silver, and oil all finish higher for the session

But technical overview for precious metals still shows negative bias while oil’s improves.

Gold Technical analysis, overview, strategies, and levels

There were two items on the economic calendar affecting both aspects of this pair's price, with US Federal Reserve Chairman Powell's testimony regarding any hints in terms of future monetary policy, as well as CPI (Consumer Price Index) figures that came in at a higher than expected 0.4%. However, while some US indices were making record highs, there has been worsening fundamental data elsewhere this morning, which may aid the precious metal should that trend continue with more data out of the Eurozone later today. The technical overview remains consolidatory whereby most of its indicators are neutral but showing negative technical bias even if its price has recovered for two consecutive sessions.

IG client and CoT sentiment for Gold

Retail long bias isn’t dropping, rising a notch instead to an extreme long 79% anticipating a stronger recovery in price.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

With both gold and silver recovering off the lows for a second straight session, more will be needed to shake off its current negative technical bias, and where the closely watched gold-silver spread has recovered albeit slightly. As with gold, most of its main indicators are neutral, and where last week’s plummet certainly tested extreme long traders.

IG client and CoT sentiment for Silver

Retail bias here has also risen instead, to an extreme long 92% and well above heavy long bias held by larger speculative traders as per last Friday’s CoT (Commitment of Traders) report.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

EIA's (Energy Information Agency) estimate will be released today, expected to show a modest 1.5M surplus following last week's significant 7.9M surplus. As for yesterday's API (American Petroleum Institute) reading, it showed a -0.5M deficit that did little to shift oil prices that had already risen prior to cross and finish above its infamous 200-day moving average level – the last of its main moving averages it needed to cross. A technical overview shift to an initializing bull trend at this stage can’t be ruled out which may entice buy breakout strategies over contrarian reversals.

IG client and CoT sentiment for Oil WTI

And in sentiment, retail bias has shifted (again) to a majority short 55% from yesterday morning’s 55% long bias, as the oscillatory movement entices traders into range-trading the energy commodity and hence limiting profit-taking.

Oil WTI chart with retail and institutional sentiment

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