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 pops higher, oil oscillates again

Retail longs enticed into closing out in the precious metal, while oil’s lack of momentum fails to entice traders as much.

Gold Technical analysis, overview, strategies, and levels

Another day, another fresh close for gold prices and a breach above the $1,790s and not far off from the much-awaited $1,800 level. However, despite the increased volatility, breakout strategies failed off of yesterday's 1st Resistance level as its price slightly retraced off the highs to test fresh buy positions, though an eventual move back higher can't be ruled out. From a technical standpoint all its key indicators continue to flash green, and the more attention the precious metal gets, the likelier it'll result in more volatility as more speculators enter the market.

IG client* and CoT sentiment for Gold

From a sentiment standpoint, retail bias is out of heavy long territory dropping to 61% as of this morning, with price gains enticing more longs into closing out, and daring a few range-trading shorts.

Gold chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Neither of oil's key pivot points were reached yesterday on a lack of intraday momentum as its bull trend technical overview continues to stall heavily at the highs, its short-term bull trend line on the verge of breaking. With coronavirus figures still dominating the headlines, travel related stocks were hurt, and in turn the energy sector on which it relies contracted the most in the US yesterday as lockdown restrictions rise in some areas globally while ease elsewhere. In oil data, API's (American Petroleum Institute) inventory reading showed a 2m surplus, and up next we'll get EIA's (Energy Information Administration) more encompassing and usually more market-moving figure expected to show a 3.2m deficit following last week's 7.2m drawdown.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

Retail bias is still long but experiencing less range-trading, with the slight majority buy sentiment dropping to just 52%.

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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