Gold and silver retrace on USD strength

Gold Technical analysis, overview, strategies, and levels

While it was a risk-off mood yesterday in the financial markets with equities retreating and yields rising, it was the US dollar that was also sought after and gold – priced in dollars – was in for a slight retreat that failed to take its price towards either key pivot point. Should a 'buy everything' moment return or even a risk-on mood that will put the greenback in retreat and it may aid the precious metal's price in moving higher and in line with its current technical overview where all its main technical indicators are flashing green.

IG client^* and CoT sentiment for Gold

Retail bias is unchanged following yesterday’s moves at a heavy long 68%, where both they and larger speculative traders according to last Friday’s CoT (Commitment of Traders) report holding an extreme long bias at 90% have initiated those long positions at lower price levels.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

A risk-off mood yesterday aided safe haven assets, but metals priced in dollars like both gold and silver finished the session lower, with silver underperforming compared to its precious metal cousin and in turn taking the gold/silver ratio slightly higher. Its price also breached yesterday’s 1^st Support with a buy-on-reversal offering some but not much before making another move lower as of this morning and in turn hurting conformist strategies.

IG client^* and CoT sentiment for Silver

While retail bias is still at extreme long levels, it has dropped to 89% from 91% yesterday, and in contrast to gold is far higher than that of larger speculative CoT traders holding aa heavy long bias of 74%.

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Oil was in for another move lower yesterday even if its price failed to break below yesterday's 1^st Support level, with EIA (Energy Information Administration) making mention that recent OPEC+ supply cuts wouldn't stop storage capacity from overflowing with oil not helping, nor a staggeringly high 19.2m increase in oil inventories that once again beat that of API's (American Petroleum Institute) prior. Its price is back at its short-term support level, which in turn is at 20-year lows, with the only upside news thus far geopolitical tensions. Its volatile technical overview has remained tested as of late, and where pivot point breaks to the downside may not be as yielding in the mid to long-term.

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IG client^* and CoT sentiment for Oil WTI

In sentiment, retail bias is still in extreme long territory but has dropped slightly to 82%.

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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