Daily Market Report: Gold, Silver, Oil
Silver outperforms as gold’s price lags at the highs
GOLD: Stalling at the highs as Monday’s flows were relatively sedate
Expectations weren’t high to begin with yesterday, given the lack of data and investor attention on this week’s retail data and earnings release. Both will be important today in determining risk appetite and future Fed easing expectations, and as a result gold’s non-yielding attribute and greenback strength will be in play as financial earnings from the US set the tone in terms of risk. From a technical standpoint, it’s a bull trend that’s stalling at the highs, and where its bull trend line on the daily chart is still holding thus far. Retail bias is still heavy long at 67% after dropping a notch, while institutional bias is at extreme long levels.
SILVER: Positive technical bias as more technical indicators flash green
We’re accustomed to seeing silver’s price underperform compared to gold’s, so yesterday’s increase was a slight relief for extreme long retail traders holding a 94% long bias, dropping a notch on slight long profit-taking. However, the bulk of those longs have been initiated at far higher price levels, and far more gains will be needed before significant profit-taking can occur. From a technical standpoint, it’s still relatively consolidatory but its price is above all its main moving averages and piercing the upper extremes of the band. Most of its technical indicators are huddled close to each other, and hence crosses occur more frequently making it a more difficult pair to predict.
OIL – US CRUDE: Bull trend gets tested ahead of API’s release tonight
Although geopolitical tensions have yet to subside, energy prices retraced off the highs yesterday and is already testing the recent technical overview change to an initializing bull trend whereby most of its indicators are flashing green, but a non-trending ADX and a greenback that thus far hasn’t weakened further. API’s estimate is tonight, and while it isn’t as encompassing as that of EIA’s estimate tomorrow, last week’s figure was quite similar to EIA’s 9.5M deficit that sent energy prices higher. US data and earnings will determine the demand side, while deficits and geopolitical tensions will dictate the supply side. Meanwhile, retail bias has increased 3% as fresh averaged-in shorts close out while longs ponder over whether to hold on anticipating further gains.
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.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
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.
