CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

‘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.

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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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.

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