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 movement remains volatile, oil recovers slightly

Long bias rises in gold and silver, drops in oil.

Gold Technical analysis, overview, strategies, and levels

While expectations have been for a higher gold prices out of traders and investors anticipating the precious metal to outperform at a time when increased stimulus and central bank easing is set to increase, the volatility in the short-term has been high with a breach yesterday of its 1st Support level on three occasions with different offerings. With equities in retreat this morning and the US dollar weakening, gold prices have already risen making a move towards today’s 1st Resistance level. The technical overview remains volatile, but it hasn’t translated into ruling out contrarian reversals just yet.

IG client* and CoT sentiment for Gold

In sentiment, retail bias has inched slightly higher to a heavy long 74%, some awaiting a move back up to unwind longs initiated at higher price levels.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

The volatility in silver hasn't been as high as that of gold with the latter taking most of the attention when investors think of a precious metal to be used as a safe haven. As such, the upside/downside movement in gold has been greater and has translated into wilder swings on the gold/silver ratio front retracing back down to 97 from yesterday’s brief 100 breach. While the main technical indicators here are neutral to the downside, where the US dollar rests may be a larger indicator in the absence of any additional factors.

IG client* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Although oil data has been less relevant in the current oil price war, yesterday's API (American Petroleum Institute) oil inventories estimate showed a 6.4M following last week's 1.7M surplus, and with EIA (Energy Information Administration) set to show a smaller 2M surplus this evening. Overall, the gap lower over the weekend for oil prices and expectations of a worsening price war has made it difficult to determine where the energy commodity's price will settle, and in the meantime any updates from the oil majors on price or output will no doubt be an influence on oil prices, such as Saudi Aramco CEO saying it would raise its supply to a record 12.3mn barrels per day, failing to see a reason to hold OPEC+ meetings in June.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

Retail long bias here has dropped from 85% to 79% on fresh short initiation, as the nearly all longs initiated at higher price levels

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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