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 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.

Learn more about oil trading.

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.

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.