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 gaps higher as short frenzy targets silver

Technical overview for both gold and silver volatile with gains benefitting extreme long CoT and retail traders, oil remains a stalling bull trend with sentiment there mixed.

Gold Technical analysis, overview, strategies, and levels

Gold prices stayed within last week's Weekly levels, on the Daily aiding conformist reversals on Thursday while testing them with a move towards its 2nd Resistance on Friday. The precious metal in focus this time around however, was silver. Its price surged following a call by some Reddit posters to create a short squeeze, and in turn it ended the week in the green, and broke the gold/silver handle which had been stuck within the 72-74 ranges into the 65s this morning, levels unseen since July of 2016. In all, gold prices alone have been relatively sedate given the latest financial markets moves, the dollar finishing the week slightly higher while 10-year yields bounced off of intraweek lows.

IG client* and CoT** sentiment for Gold

Meanwhile, CoT speculators have increased their extreme buy bias from 83% to 85% on an increase in gold longs by 6,025 lots and shorts reduced by 4,883 lots. They aren't alone, as retail bias since the start of last week has risen from 83% to 87%. Silver retail bias is extreme long as well, but has dropped following the gap higher from 91% to 89%, CoT speculators heavy buy and rising to 74%. Platinum CoT bias is extreme at 82%, retail bias at 90%.

Gold chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Stuck near the highs has been the theme for oil prices as of late, staying within its previous Weekly levels while testing conformist breakout strategies on both Thursday and Friday, both times contrarian reversals winning out on a lack of follow-through beyond the key levels, most of its key technical indicators on the Weekly flashing green but heavily tested on the Daily. In oil data, Baker Hughes oil rig count showed another consecutive increase, this time to 295 from 289 prior. Manufacturing data will be released throughout the day, PMIs out of China yesterday from CFLP a miss for this sector and more so for services.

Learn more about oil trading.

IG client* and CoT** sentiment for Oil WTI

CoT speculators have upped both long and short positioning in oil, the latter outdoing the former and taking extreme buy bias a notch lower to 80%. Retail bias fluctuated into majority short territory during the week, but starts off in the middle.

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 for the outer circle. Inner circle is from the previous trading day.
** CoT sentiment taken from the CFTC’s Commitment of Traders report, outer circle is latest report released on Friday with the positions as of last Tuesday, inner circle from the report prior.

Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.

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.

React to volatility on commodity markets

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

See opportunity on a commodity?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform

See opportunity on a commodity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.