Safe haven gold and silver plummet as risk appetite improves
Gains in equities hurt the case for holding precious metals, oil’s daily technical overview turns more bullish.
Gold Technical analysis, overview, strategies, and levels
With the US dollar strengthening and US equities making fresh record highs, gold's price was in for a retreat. As a result, from a technical standpoint, it is little changed with most of its technical indicators neutral, and where it continues to show negative technical bias. Downside movement can’t be ruled out at this stage especially if equities manage to make fresh highs, but if the gains in equities are at risk of an eventual reversal, then any losses here too would likely recover.
IG client and CoT sentiment for Gold
In the meantime, however, any further drop in its price would heavily test both retail and institutional traders, both holding heavy to extreme long bias, and prone to a squeeze on long positions.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
The technical overview and difference between gold and silver has remained relatively within limits, and hence the technical overview for both and the clarity in terms of the main technical indicators are near identical, and showing ongoing negative technical bias here as well that could be prone to further weakness.
IG client and CoT sentiment for Silver
Even the bias enjoyed by retail and institutional traders has stuck with the traditional heavy to extreme long bias, the former reducing that bias a notch to an extreme long 91%.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Although equities gapped higher yesterday, oil's prices didn't follow much higher, opting for a lower start to yesterday's session and only an eventual higher finish towards the upper end of its bear trend channel. Whether the gains in equities translate into higher risk appetite for energy or not, the technical overview on the daily has shifted to an initializing bull trend where nearly all its technical indicators are flashing green, and just as fundamental data is about to be released that tends to make technicals less relevant. While there's significant US economic data in store this week that may affect the energy commodity, tonight's API (American Petroleum Institute) release will be closely watched prior to tomorrow's more encompassing EIA (Energy Information Administration) estimate.
IG client and CoT sentiment for Oil WTI
Oil WTI chart with retail and institutional sentiment
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