Silver and gold oscillate at relative lows, oil rebounds slightly
Retail long bias drops in gold and oil, but traders large and small remain heavy long in all three.
Gold Technical analysis, overview, strategies, and levels
Despite a surprise surge in equities aiding risk appetite running contrast to coronavirus fears and the dollar outperforming, gold prices managed to hold its ground at the lows in a relatively consolidatory session, but where further 'risk-on' moves in the financial markets could send further flows towards riskier assets and away from safe haven products like this precious metal. From a technical standpoint, while its bull trend line has been broken on the daily (the weekly overview remains a stalling bull trend for the time being), a couple of its main technical indicators continue to flash green. However, more fundamental news awaits, and this time it’s the US dollar as a factor given tomorrow's NFP (Non-Farm Payrolls) release.
IG client* and CoT sentiment for Gold
From a sentiment standpoint, retail long bias has dropped 5% to a heavy long 70%, though could rise again if gold prices drop further and shorts get enticed into closing out.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Gold has been the relative underperformer as of late when viewed in context with silver, but yesterday’s consolidatory session for both has done little to shift the gold/silver ratio. As it stands, silver's technical overview has remained relatively more consolidatory and rangebound compared to gold (or even oil), even if its ADX (Average Directional Index) is showing an ongoing propensity to trend. Its price briefly crossed both the 100-day and 50-day moving averages which are closely huddled together and on the verge of crossing themselves, but its price has (for now) failed to close below it.
IG client* and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
With risk appetite improving in equities (even if coronavirus fears haven't faded), oil prices managed to rebound slightly off the lows, and where EIA's (Energy Information Administration) latest figure regarding US oil inventories showed a 3.4M surplus. This was following API's 4.2M surplus prior. On the OPEC+ front, they have yet to deliver a response as meetings continue and should anything emerge on that front and we can expect further volatility even if its main technical indicators are showing a bear trend given that negative technical bias was buoyed by fundamental factors that could be at risk of reversing.
IG client* and CoT sentiment for Oil WTI
The price increase has aided extreme long retail traders who were holding an 88% long bias yesterday. However, the bias has dropped by only 1% as the bulk of those longs have been initiated at higher price levels and in need of a larger move back up.
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%.
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.
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.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
