Gold finishes higher, oil retraces
CoT longs are still piling into the precious metal, while exiting oil.
Gold Technical analysis, overview, strategies, and levels
It's been an interesting formula for gold as of late, on days where equities are in retreat it manages to rise, and where indices drop its fall is relatively limiting. The US dollar underperforming in the FX market has also been an item helping the precious metal's recent moves. Should the formula of purchasing equities and hedging in gold break, and it'll be gold prices that aren't directly aided by stimulus (as opposed to equities) that could be on the losing end of that unwinding, even if its main technicals are flashing green.
IG client* and CoT sentiment for Gold
On the sentiment front, CoT (Commitment of Traders) speculators are still piling into longs with gold buys rising by 20,483 lots, but with shorts rising by 5,770 lots the net percentage bias has dropped a notch to a (still) extreme long 84%.
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Oil prices managed to make fresh intraday highs only to undo the bulk of those gains later in the session and early this morning, with improved economic data combined with a constant spike in coronavirus cases that’ll dent transportation demand likely continue to take the attention for some time to come. Bullish moves have been limiting in breaching the now infamous $40-41 handle, and in terms of oil data we've got API's (American Petroleum Institute) inventories reading later tonight.
IG client* and CoT sentiment for Oil WTI
As for trader sentiment, retail long bias is little changed and up a notch at 54%, while CoT extreme long bias has dropped to 81% on an increase in shorts by 10,193 lots and a simultaneous drop in longs by 6,864 lots.
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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