Gold little changed for the week, oil finishes higher
Majority long bias amongst retail traders drops in both, not far off from shifting in oil.
Gold Technical analysis, overview, strategies, and levels
After making a fresh high last week that was noteworthy given the August futures contract briefly crossed the $1,800 level, gold prices ended close to where it started failing to offer pivot point plays on either the daily or weekly. All its main technical indicators continue to flash green on the Weekly long-term, while remaining bullish albeit stalling heavily in the short-term Daily. While news of a slowdown in physical demand in traditional markets is usually bearish, it's been offset thus far by financial exchange-traded fund inflows elsewhere that are reportedly close to reach record levels last seen in 2009. That means that any further liquidity constraints or an absence of general market stimulus could pave the way for a real eventual swift break of its key pivot points, and as a result is keeping its overview volatile instead of bullish.
IG client* and CoT sentiment for Gold
In sentiment, retail bias is still in heavy long territory but is down a notch since the start of last week.
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
It's a technical overview shift for oil prices, from a previous volatile overview that held since March to a stalling bull trend, but where contrarian strategies certainly can't be ruled out when factoring in fundamental factors. While economic reopening is bullish for the energy commodity, the rise in coronavirus cases and expectations of the persistence in dented long-term long-distance travel means the reliance on OPEC+ output cuts and compliance amongst its members will be crucial. Its price has been rangebound for quite some time, and any significant gains are easily at risk of an eventual reversal should US producers come back online, with the latest in oil data showing Baker Hughes' active oil rig count for the US dropping to 185 from 188 prior.
IG client* and CoT sentiment for Oil WTI
Retail traders have been swift profit-takers at these levels, the bias dropping from a majority long 63% at the start of last week to just 53% at the start of this week.
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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