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.

Oil plummets further into bear market territory, gold and silver retrace

Oil and silver retail bias in extreme long territory, gold long bias rises.

Gold Technical analysis, overview, strategies, and levels

Gold prices were in for a bit of a retreat yesterday as the US dollar relatively outperformed in the FX market, yet that did little to undo its current bull trend technical overview on both the daily and weekly that has been buoyed by recent fundamental factors as no breakthrough has been visible on the coronavirus front just yet. All its main technical indicators continue to flash green on both the daily and weekly chart, but where the gains have been gradual and offering little in terms of buy breakout opportunities intraday.

IG client* and CoT sentiment for Gold

Retail bias remains in heavy long territory, rising 4% to 70%.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

More so than gold, silver prices were also in for retracement, and the bull trend technical overview on the daily is showing less signs of holding compared to its precious metal cousin, and needing far less to shift to a more consolidatory outlook. Furthermore, in the FX market the US dollar was a relative outperformer, which has a tendency to hurt the precious metal priced in dollars, and as such in the absence of any further factors silver prices were in for an inverse move lower. Its weekly outlook is more consolidatory but showing long-term positive technical bias, while the daily its price is struggling to breach its short-term resistance level.

IG client* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

While filling the weekend gap (again) is a positive sign, far more will be needed to undo the current heavy negative technical bias experienced by oil prices which slid later in the session, and where its weekly and daily is expected to be more fundamentally affected by coronavirus fears and its affect on the travel industry and expected future growth as opposed to technical indicators. OPEC+ may have an emergency meeting today/tomorrow, so expect any results to keep oil prices volatile, with Russian and Saudi leadership confirming readiness to cooperate within the OPEC+ format in hopes of placing a floor on recent prices moves. We'll get the first of oil data this evening in the form of API's (American Petroleum Institute) oil inventories change, with last week's 4.3M deficit differing significantly from EIA's (Energy Information Administration) 3.5M surplus.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

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%.

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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.

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