Gold, silver, and oil experience another volatile session
Fed rate cut likelihoods surge, retail long bias rises in gold and silver.
Gold Technical analysis, overview, strategies, and levels
Even as equities were dropping on Tuesday, gold prices also fell conforming to its current volatile technical overview that has been testing fresh longs entering the market. Wednesday's price moves offered breakout opportunities in both directions befitting its current volatile technical overview once more where pivot points are at risk of being broken in the current climate. US preliminary GDP (Gross Domestic Product) figures will be released today, and while they're expected to show growth, attention is now on where future economic data figures will rest, no doubt tested in some sectors and regions with severe contractions given the current effects from the coronavirus. US Federal Reserve rate cut likelihoods continue to rise, majority pricing in one for April, two by June, and three by the end of the year.
IG client* and CoT sentiment for Gold
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
After suffering volatile sessions earlier in the week that undid its previous bull trend technical overview, Wednesday's price moves were once again relatively volatile, breaking beneath yesterday’s 1st Support level before eventually recovering. The gold/silver ratio has risen once again as gold finished slightly in the green while silver prices faltered.
IG client* and CoT sentiment for Silver
In sentiment, retail bias is extreme long and rising to 91%, with platinum at an extreme long 82% after experiencing another price drop, and palladium at a full short 100% with the precious metal's price registering another fresh record high this morning.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
After API's (American Petroleum Institute) slight 1.3M surplus Tuesday night, EIA's (Energy Information Administration) more encompassing estimate showed a smaller 0.5M increase following expectations for a 2.3M addition. From a technical standpoint – and it has mattered less as of late, the latest moves have remained volatile, with negative technical bias but where fundamental risk-related moves regarding economic growth and travel concerns have resulted in breakout strategies outperforming against reversals. Its price broke through both yesterday’s 1st and 2nd Support levels, and a moving average (MA) cross occurred with the 50-day moving below its 200-day, having recently crossed below its 100-day MA.
IG client* and CoT sentiment for Oil WTI
Retail bias was 84% extreme long yesterday, and the latest plummet has taken that bias 4% lower to 80%.
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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