Consolidatory moves for gold, silver, and oil
Lack of momentum for precious metals beyond their respective mid-term resistance levels, while oil dips despite API drawdown.
Gold Technical analysis, overview, strategies, and levels
As far as levels go, gold's mid-term resistance level was breached on Tuesday morning, and as a result kept its bull trend overview on the daily intact. However, the gains were short-lived as making those gains stick has proven to be a harder task, and it has yet to reach its 1st Resistance level on the weekly outlook at $1536 thus far. That doesn't mean breakout strategies may not outperform, however it may be down to greenback performance and geopolitical tensions failing to subside be it in the Middle East or on the Korean Peninsula.
IG client and CoT sentiment for Gold
But traders large and small aren't complaining, as both hold heavy to extreme long bias in the precious metal, with retail traders dropping their heavy long bias a notch.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Unlike gold, silver's price increase early in the session on Tuesday was met with eventual retracement that tested long traders, as a short-term bull trend brushes up against a mid-term resistance level that thus far has managed to hold. Furthermore, the bulk of the recent gains in both precious metals’ gold and silver has been down to USD weakness, and should the greenback find its footing and the gains we’ve seen will be at risk of a reversal. As for the gold/silver spread, it has avoided dropping further for the time being.
IG client and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Tuesday's API (American Petroleum Institute) estimate showed a 7.8M deficit following last week's significant 7.9M drawdown. And with EIA's (Energy Information Administration) estimate postponed until tomorrow, indirect appetite for energy with manufacturing PMI (Purchasing Managers Index) figures released today will have to suffice. Its technical overview has continued to stall at the highs, but enough to keep its main technical indicators on the daily flashing green and hence its technical overview a bull trend even if it has lacked the ability to offer significant buy breakout opportunities, with buy on reversal strategies panning out instead.
IG client and CoT sentiment for Oil WTI
Oil WTI chart with retail and institutional sentiment
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