CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Gold and silver finish higher, while oil retreats slightly on ‘risk-off’ mood

Retail long bias drops slightly in gold but remains extreme long in silver and oil.

Gold Technical analysis, overview, strategies, and levels

With most of its daily technical indicators flashing green, its price oscillating within rangebound territory but near its highs, and investors continuing to hold their breath on the risk front, gold prices didn’t offer much in yesterday’s session, but have been rising this morning following Apple’s revenue warning for the quarter that have sent the markets into a bit of a ‘risk-off’ mood. As it stands, central bank easing has been the solution for recent coronavirus fears and the expected fallout, which has kept risk appetite relatively strong in equities but would normally dent fiat currency as central banks keep the presses running against relatively limited supply for the precious metal. The weekly overview is a stalling bull trend, and the daily overview while showing positive technical bias is torn between breakout vs. reversal strategies depending on whether the current ranges can hold.

IG client* and CoT sentiment for Gold

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

After making a move higher earlier in the session, the gains were relatively limited, even if silver managed to outperform slightly against gold with a slight drop in the gold/silver ratio. The net result however has done little to a change to its current consolidatory technical overview, where its price is now above all its main short and long-term moving averages on the daily but with the remaining main technical indicators neutral (on both the daily and weekly), and combined with a non-trending ADX (Average Directional Index). The US dollar was a relative underperformer in the FX market yesterday, and should that continue combined with any further risk-off moves could give the precious metal priced in dollars a slight leg to stand on.

IG client* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Economic data as of late has been tested, and Apple’s revenue warning put the energy commodity in slightly retreat having already been hurting at the onset of the coronavirus. Whether it overshot in its drop below $50 remains yet to be seen. In the meantime, the technical bias remains negative, with its price below all its main long-term moving averages and with a trending ADX. Due to the US holiday yesterday, API's (American Petroleum Institute) figure will be released tomorrow night instead.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

On the sentiment front, any further gains in its price would be a positive sign for both retail and institutional traders holding heavy to extreme long bias in the energy commodity, with no changes between yesterday and today for retail traders holding an 82% extreme long bias.

Oil WTI chart with retail and institutional sentiment

*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.

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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.

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