Gold surges to fresh highs, silver outperforms

Oil prices also rise in a bullish session despite API’s surplus as supply-side concerns resurface.

Gold Technical analysis, overview, strategies, and levels

Precious metals have continued to enjoy gains in prices, and yesterday's moves took it beyond its 1st Resistance level for a conformist strategy. The weekly overview is a bull trend, and while the daily overview is bullish with all its main technical indicators flashing green, thus far the split has remained between conformist breakout strategies on increased volatility vs. contrarian reversal strategies when momentum is lacking. A worsening economic environment means monetary and fiscal policy will be in full swing, with more fiat printing giving precious metals a leg to stand on.

IG client* and CoT sentiment for Gold

As for retail trader sentiment, majority long bias has been dropping as of late as longs get enticed into taking profit, but the latest figures show no change since yesterday morning, opting to remain at a majority long 59%.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

Silver was the outperformer once again compared to gold, with the gold/silver ratio registering a fifth consecutive decline as silver prices outperform that of its precious metal cousin. In the overall precious metals market, palladium was in for yet another fresh record high, and so too did platinum enjoy gains for the session. Fed minutes showed ongoing optimism regarding the economy despite coronavirus risks, but money markets continue to majority price in a rate cut later this year and anticipate further easing globally to address recent fundamental risks. From a technical standpoint, while a sell-on-reversal on yesterday’s 1st Resistance panned out the first time, the second move higher has offered little retracement thus far, and no doubt should the gains continue would entice contrarian breakout strategies over conformist reversals.

IG client* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Multiple factors have been at play for oil prices with concerns over dented demand as factories are slow to come back online in China and possible reductions in supply due to geopolitical instability (that may get addressed swiftly given output requirements). But the most recent item on the economic calendar front was API's (American Petroleum Institute) oil inventories report which registered a 4.2M surplus following last week's 6M surplus. And as always, EIA's (Energy Information Administration) estimate is up next, this time around expected to show a similar 3.3M increase. From a technical standpoint, the gains made yesterday were well beyond its 1st Resistance level that aided conformist strategies.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

In sentiment, retail bias continues to drop as longs stuck previously on the move lower get enticed into closing out, with the extreme long bias dropping 4% to 79%.

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
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Change
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

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.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.