Oil rallies, gold and silver continue to stall
News of treatment aids risk-on mood, USD weakness keeps precious metals bid.
Gold Technical analysis, overview, strategies, and levels
Gold prices remained rangebound and failed to reach either end of yesterday's key pivot points, with a risk-on mood in the financial markets usually negative for the non-yielding precious metal but a weakening greenback keeping that which is priced in dollar slightly bid. In central bank news, the head of the Federal Reserve didn't strike an optimistic tone regarding the economy, saying the central bank was ready to do more if needed, and that new programs to buy corporate bonds and lend to mid-size companies would be released in the near future. With its price stalling at current levels, its bull trend channel is only barely holding at this stage.
IG client* and CoT sentiment for Gold
Both retail traders who have upped their heavy long bias and institutional traders will be hoping that the current channel holds.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Although silver prices finished higher and outperformed against gold to take the gold/silver ratio slightly lower, here too it failed to reach either end of yesterday's key pivot points, and in turn failing to offer conformist and contrarian strategies a play. Its price is just below its 50-day moving average (MA) and above all its main short-term MA's, but where its remaining key indicators are neutral and combined with a non-trending ADX (Average Directional Index). As a result, little is left to shift its daily technical overview to consolidatory to match that of its weekly overview.
IG client* and CoT sentiment for Silver
As with gold, retail bias here is also rising with traders anticipating further gains in both precious metals, the bias rising to an extreme long 89%.
Silver chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Hopes of a cure/treatment for the coronavirus combined with talk of reopening and an easing of lockdown restrictions aided in forming a risk-on mood yesterday in equities. On top of that, when it comes to oil which relies on restrictions easing to facilitate more transportation and in turn its reliance on the energy commodity to fuel transportation needs, EIA's (Energy Information Administration) showed a smaller than expected (and previous) surplus of 9m yesterday, lower than that of API's (American Petroleum Institute) the day before. That took oil prices well above yesterday's 1st Resistance level with ease, aiding conformist breakout strategies and taking its price to the upper end of the bear trend line.
IG client* and CoT sentiment for Oil WTI
It also enticed some freshly initiated longs into closing out, with retail bias dropping but still in heavy long territory at 70% as of this morning.
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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