Daily Market Report: GOLD, SILVER, OIL – US CRUDE
Gold retraces off the highs as both retail and institutional bias majority long ahead of tomorrow’s NFP.
GOLD: Short-term resistance level holding as equities rise
Equities continued to rise, and yields dropped on lower long-term growth worries, with the net result a retracement off the highs for this pair following Tuesday’s surge. The tussle continues for this pair between a lagging greenback, a rise in geopolitical tensions, and a fall in yields keeping the precious metal bid, while a surge in equities on the other denting safe haven inflows as investors increase their risk appetite. Meanwhile, a currency war may be brewing in the background, and if it even partially comes to fruition it’ll mean products that are seen as a hedge against inflation will outperform. Going into tomorrow’s NFP report both retail and institutional traders are holding majority long bias, the former at 63% and the latter at an extreme long 83%.
SILVER: Suffering retracement on a broken short-term bull trend line
Both gold and silver suffered retracement yesterday, but given the increased volatility with gold, the losses here were more limiting (relative to its technical overview), with positive technical bias still holding even as its short-term bull trend get broken. If the US dollar continues to retreat, it may aid in keeping this pair bid, especially if tomorrow’s NFP report disappoints. However, intraday volatility has remained somewhat sedate, and with a non-trending ADX reversals and breakouts for limited profit-taking.
OIL – US CRUDE: EIA posts smaller than expected deficit as technical overview remains mixed
With the daily technical indicators closely huddled together for this energy commodity, shifts in its technical overview may occur more frequently. Retracement off the lows did occur yesterday, though some of those gains are being given back as of today morning. EIA’s 1.1M deficit was below expectations, and certainly below API’s estimate the night before, with tomorrow’s NFP report giving clues as to where the greenback may settle before the weekend. Retail traders are primarily range-trading with fresh longs taking profit yesterday and reducing majority long bias by 5%, while institutional bias continues to push into extreme long sentiment levels.
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.
Be ready to act on the next non-farm payrolls report
Explore the influence the non-farm payrolls report has on American markets ahead of the next release on 2 April 2021.
Which markets could be more volatile after the NFP report?
Why was the report introduced and what does it tell us?
Why is the report important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
