Oil prices rise off the lows despite EIA surplus, gold and silver prices little changed
Retail bias remains extreme long in oil and silver, but profit-taking in the former takes the buy bias lower.
Gold Technical analysis, overview, strategies, and levels
When risk appetite improves in the financial markets, gold prices have a tendency to go into retreat. And yet, despite equities making fresh highs, the safe haven precious metal also managed to recover off the lows to finish slightly in the green in what was a narrow session. A part of that may have to do with how the US dollar performed in the FX market, as it was a slight underperformer, while a larger factor was the upward revision in coronavirus figures that aided safe haven assets. As for US Federal Reserve (Fed) Chairman Powell's testimony in his second day before Congress, he remained upbeat and showed no sign the current central bank policies would see a shift, which will mean the fiat currency could remain in easing mode against gold's more finite supply.
IG client* and CoT sentiment for Gold
Retail bias here remains heavy long standing at a majority buy 68%, far less than that of silver or oil.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
After making a close run towards yesterday's 1st Support level, silver's price movement remained relatively rangebound, and where against gold it took another hit, taking the gold/silver ratio slightly higher. From a technical standpoint, it remains consolidatory with nearly all its main technical indicators neutral, but just above a key support level which roughly coincides with its 50 and 100-day moving averages.
IG client* and CoT sentiment for Silver
Retail bias here is far heavier than that of gold, standing at a staggeringly high extreme long 93%, a notch higher than yesterday’s figure.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Following API's (American Petroleum Institute) 6M surplus that kept oil prices slightly at bay, EIA's (Energy Information Agency) registered a larger 7.5M surplus, but even before then oil prices were already moving higher prior thanks to improved risk appetite earlier in yesterday’s session before undoing some of those price gains this morning on revised coronavirus (COVID-19) figures. The move higher aided conformist volatile breakout strategies breaching yesterday’s 1st Resistance level in a move towards its 2nd Resistance, but has done little to shake off its current negative technical bias. It remains prone to a break in its pivot points should any fundamental news on the oil front emerge.
IG client* and CoT sentiment for Oil WTI
As for sentiment, retail bias has dropped 4% on long profit-taking but remains in extreme long territory at 83%.
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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