‘Risk-on’ move in equities sends gold and silver lower, oil traders await OPEC+ news
Gold’s overview turns volatile, retail long bias rises.
Gold Technical analysis, overview, strategies, and levels
Despite coronavirus fears, equities posted significant gains yesterday, which in turn hit safe haven assets like the yen and gold prices in the process. Not only did yesterday's 1st Support level break after repeated attempts to hold, it also made a move beyond yesterday's 2nd second support as the precious metal's stalling bull trend technical overview took a hit despite fundamental factors that would have ideally been in its favor. As with yesterday (and the days before it), risk-related flows will likely be the dominating factor here, as should central banks reduce or halt liquidity injections and equities could be in for retreat, which in turn would aid safe haven assets.
IG client* and CoT sentiment for Gold
Retail bias continues to rise as a result with shorts getting out and longs initiating, and the bias has risen from a heavy long 70% yesterday closer to extreme long levels at 75%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
With safe haven getting hit and gold prices in retreat, it was silver's turn to relatively outperform against its precious metal cousin. Despite finishing in the red, it managed to hold onto relative gains but shifting its daily short-term overview to a more consolidatory overview that’s easily prone to a breach of its pivot points should any significant USD related movement occur. Its price is now beneath all its main short-term moving averages (MA) but above all its main long-term ones, with its 100-day and 50-day MAs just beneath the market close.
IG client* and CoT sentiment for Silver
Retail bias here remains in extreme long territory awaiting a move back up at 92%, while for platinum its 84% long and palladium its an opposite full short 100%.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Oil prices were in for a move back up early in the session at last offering some relief before the late API (American Petroleum Institute) weekly inventory figure showed a significant 4.18M surplus. That took the energy commodity’s price back towards fresh lows, and keeping its technical overview showing heavy negative bias but at the mercy of fundamental factors including OPEC+’s meeting yesterday which thus far has yet to yield an output cut reduction given a reduction in demand for oil out of China. Should any fresh news emerge on that front, and it’s likelier than not that pivot point breaks will occur more frequently. Up next its EIA's (Energy Information Administration) turn to post its figure, with expectations set for a 2.9M reading.
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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