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 breaches $1,800, oil oscillates towards the highs

ETF inflows surge into the precious metal, demand from traditional big markets drops.

Gold Technical analysis, overview, strategies, and levels

Gold took much of the attention yesterday, with a breach of the closely-watched psychological $1,800 level that has further enticed speculators into the precious metal. Conformist breakout strategies outperformed this time around as volatility spiked with quick work of yesterday's 1st Resistance level before prices retraced back towards the key pivot point. The increased demand has been on the ETF front with record inflows the bulk of which coming from North American funds, but keep in mind that demand from traditional big markets like India and China are declining, and may remain the case especially on a household level in countries that have applied less stimulus measures, and even more so once what little stimulus on offer comes to a potential end.

IG client* and CoT sentiment for Gold

Retail buy bias hasn't dropped on yesterday's surge, attracting more longs and taking the bias back into heavy long territory at 64% as of this morning.

Gold chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

While oil prices finished higher to keep its some of its key technicals flashing green, it offered little momentum and in turn failed to reach either of yesterday's key pivot points. In oil data, EIA's (Energy Information Administration) US crude oil inventories estimate was well above that of API's (American Petroleum Institute) reading the night before, registering a 5.7m increase but doing little to hurt the energy commodity's price. Coronavirus cases have passed 12m and topping 3m in the US with a big daily spike not helping the general context of transportation and energy demand, as well as news from United Airlines on big layoffs a reminder of what lies in store for global air travel.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

In sentiment, retail bias has shifted from a previous slight majority long 52% to a now slight majority short 54%, and at risk should a move higher should a successful breach of its current resistance level commence.

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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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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