Daily Market Report: Gold, Silver, US Oil
Gold surges back above $1400 as US yields plummet further, both retail and institutional traders hold onto majority long bias.
GOLD: Plummeting yields and rising geopolitical tensions send the precious metal soaring higher
With US yields dropping, European yields in negative territory, and geopolitical tensions failing to subside, gold’s price soared back above the $1400s, and above all its short-term moving averages. Most of its technicals indicators are – no surprise – flashing green, as is the case with its mid-term technical indicators as well, but with the source of movement occurring from outside factors like the bond market, they ought to be taken into consideration prior to initiating a trade here. The recent moves have been in line with both retail and institutional sentiment, the former only slightly dropping their majority long bias with preference to holding on.
SILVER: Positive technical bias remains after its price briefly breaks the 100-day moving average
The initial intraday move lower beneath its 100-day moving average may have spooked some long traders, but with the greenback dropping it managed to recover and finish higher, and in line with its current positive technical bias. The moves here aren’t anywhere near as volatile as with gold, and with a non-trending ADX the technical overview remains consolidatory with preference to reversals and breakout strategies in times of volatility to avoid getting stopped out. As with gold, both retail and institutional traders here are majority long and beneficiaries of the recent price moves in both precious metals.
OIL – US CRUDE: Oil prices plummet despite OPEC oil output extension as demand worries persist
With OPEC (and OPEC+) confirming its oil output cut earlier this week and followed by a 5M deficit out of API’s estimate regarding US oil inventories, energy prices should have ideally risen. Instead, oil prices plummeted and tested both retail and institutional traders who are majority long in the process, the latter at an extreme long 81%. The price drop enticed some retail shorts into closing out, and pushing majority long bias 9% higher to a now heavy long 66%. EIA’s more encompassing estimate is up next, forecasted to show a more moderate 2.8M deficit after last week’s massive 12.8M drop, though global demand worries and the drop in yields may be a larger factor in dictating its price given current market focus.
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