Gold, silver and oil finish the session lower
Despite gold briefly breaching the $1,700 level, the gains thus far have failed to stick.
Gold Technical analysis, overview, strategies, and levels
Gold prices were volatile yesterday moving within its Weekly 1st Resistance and Support levels, though should the current volatility persist and it's likelier than not that pivot points are at risk of eventually breaking. US yields have been plummeting as investors expect a recession, and as a result is usually a positive factor for the non-yielding precious metal's attractiveness in the current uncertain atmosphere. Big rate cuts are still priced in for the Fed for next week, though markets await coordinated stimulus from governments and central banks, the latter likely to aid gold prices given it will involve further easing. Until then, with rising volatility and uncertainty its technical overview remains volatile, as tempting as it may be to view it as bullish given nearly all its main technical indicators are flashing green.
IG client* and CoT sentiment for Gold
Retail bias has risen 6% to a heavy long 73%, not just on shorts getting out but also on longs initiating at the highs anticipating further price increases.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
As with gold, it was a volatile session for silver with its price going below yesterday's Weekly 1st Support level for a sell breakout opportunity for limited profit-taking, before retracing back up in a volatile session. And while silver is outperforming against gold this morning, yesterday it was an underperformer with the gold/silver ratio breaching the 100 level.
IG client* and CoT sentiment for Silver
Retail trader bias while still in extreme long territory has dropped 4% to 89%, with usually a drop in sentiment occurring when its price increases.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Oil prices were the focus of yesterday's trading session following its plunge as an oil price war gets underway for market share in a market that has less to offer thanks to plummeting demand due to the coronavirus. The energy commodity's price ending the session in a volatile manner with a move beyond the Weekly 1st Resistance level and aiding both conformist and contrarian strategies in the process. What the oil majors intend to do in light of recent events will likely be a stronger factor, and making oil data this week like that of tonight's API (American Petroleum Institute) less likely to leave a lasting impact on oil prices.
IG client* and CoT sentiment for Oil WTI
In sentiment, retail bias remains in extreme long territory at 85% only down a notch, with nearly all those long positions initiated at higher price levels and in need of further price moves back up.
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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