Silver/gold ratio plummets, oil edges higher

API’s reading tonight as oil traders await OPEC+ scheduling update.

Gold Technical analysis, overview, strategies, and levels

Gold prices gapped higher and finished higher yesterday, but not before oscillating within relatively narrow ranges. Riskier currencies were in demand and equities managed to recover, meaning the price increase here may have been due to big USD weakness which underperformed in the FX market. The precious metal's technical overview of a stalling bull trend has failed to offer significant follow-through on multiple occasions, testing buy positions in the process. Should the risk-on approach in equities persist, and USD weakness will need to continue to put somewhat of a floor on gold prices.

IG client* and CoT sentiment for Gold

In sentiment, retail long bias hasn't budged from a heavy long 75%, as traders continue to anticipate further price gains.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

Silver outperformed compared to gold once more with a price move close to yesterday's Weekly 1st Resistance level. That has kept its bull trend technical overview intact, and the focus has returned to the gold/silver ratio which reached a sub-95 reading yesterday before retracing slightly this morning. That has meant the March gains that took the ratio's price to a record high 126 has been undone at last, a squeeze that no doubt hurt those shorting the ratio earlier this year. Risk-on moves combined with a weaker dollar usually aids silver over gold, and that type of atmosphere over the past couple of trading sessions have given silver prices the boost to cross the $18 mark. Making it stick will rely on ongoing weakness in the greenback.

IG client* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Oil prices failed to live up to volatile expectations, but then again we haven't gotten any significant oil data just yet. That'll change with tonight's API (American Petroleum Institute) reading, with any moves unlikely to stick with EIA tomorrow, and OPEC+ meetings as early as this Thursday. The latest news on that front is that the US and Russian leaders discussed OPEC+ output cuts, which indicates a likelihood that at the very least the previously agreed upon output cuts won't be undone.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

As we get closer to the OPEC+ meetings retail long bias is rising but is still at moderate levels, registering 58% 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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