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.
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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