Gold retraces, oil dips
Lockdown restrictions and worsening US-China relations dent appetite for oil ahead of tomorrow’s OPEC+ technical meeting.
Gold Technical analysis, overview, strategies, and levels
Gold prices oscillated again at the highs undoing gains made earlier in the session before dropping this morning. This is despite the plummet in equities, though given the 'buy equities and hedge by buying gold' mentality combined with a stronger dollar this morning, in some cases gold prices may move with some correlation alongside indices. All its main technical indicators continue to flash green, but the exposure of this leg of the trade to downside risk and expectations of increased volatility is keeping its overview volatile, and in turn pivot points in both directions are at risk of breaking. US CPI (Consumer Price Index) figures will be released later today expected to show an increase.
IG client* and CoT sentiment for Gold
Retail bias while still heavy long is up a notch to 71%, as traders both small and large anticipate further upside gains.
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
There have been at least a couple of negative factors yesterday including US-China relations worsening and lockdown restrictions being reimposed in the state of California, usually negatively affecting the energy commodity in need of increased transportation and travel demands. The net result was a partial undoing of gains made late last week, and has taken oil prices as of this morning below the $40 level. We've got API's (American Petroleum Institute) reading tonight, though with OPEC+'s technical meeting tomorrow risk appetite might be limited with repositioning a bigger factor.
IG client* and CoT sentiment for Oil WTI
Retail traders are beginning to range-trade these consolidatory moves, yesterday's price drop causing the bias to shift from the middle to 57% long as of this morning.
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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