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.

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.

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.