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 retraces after API surplus

Retail longs continue to unwind in the precious metal, raise their majority buy bias in oil on the dip.

Gold Technical analysis, overview, strategies, and levels

Equities were in for fresh highs, and with the US dollar in retreat in the FX market, gold prices managed to move higher for the session, breaching yesterday's 1st Resistance level plenty of times offering some in both directions for both conformist and contrarian strategies, and once against testing long positions on a relative lack of follow-through beyond its daily pivot points. That has meant trend traders continue to get tested within the current environment and are enticed into taking profit sooner, and those range-trading for limited profit-taking are at risk of having fresh positions initiating opposite exposed to an eventual trend move.

IG client* and CoT sentiment for Gold

Retail long bias as a result is still majority long but has dropped from heavy long territory of 66% yesterday to 63% as of this morning.

Gold chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Oil prices oscillated yesterday to initially make fresh highs before finishing the session lower, keeping its price within its key pivot points and failing to offer any pivot point action. China-India tensions may have dropped as have tensions on the Korean Peninsula, but they’ve picked up slightly in oil rich regions and should that accelerate may offer a floor for the energy commodity’s price. What hasn’t helped is oil data yesterday, whereby API's (American Petroleum Institute) inventories reading showed a 1.749m surplus, and EIA's (Energy Information Administration) more encompassing estimate is up next expected to show a 1.2m increase identical to last week's reading. Lockdown restrictions are easing, manufacturing data is better than expected, but that won’t translate into increased travel demand just yet especially from countries deemed as high-risk.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

In sentiment, retail long bias has risen after yesterday’s drop to 59%.

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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