US yields take USD higher, gold and silver drop

Gold Technical analysis, overview, strategies, and levels

Gold prices suffered a drop yesterday testing its current bull trend technical overview that's been stalling heavily at these levels, but a buy-on-reversal conformist strategy was the outperforming pivot point play for the day as its price partially recovered. The precious metal's price is now below all its main short-term moving averages (MA) but still above all its main long-term MA's, with a positive DMI (Directional Movement Index), and its ADX (Average Directional Index) showing an ongoing propensity to trend. A part of the losses here can be attributed to the rise in the US dollar as yields rise, which in turn is usually negative for the non-yielding precious metal. Fundamental data out of the US awaits with unemployment claims today and Non-Farm Payrolls tomorrow. In sentiment, retail bias has risen to a heavy long 76% anticipating retracement back up.

IG client^* and CoT sentiment for Gold

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

It was another non-story for silver prices yesterday, oscillating within a narrow band once again and opting to move within its current consolidatory technical overview. The lack of movement in either direction failed to give pivot point traders a play, though that could change with fundamental US employment data released today and tomorrow, as could be the case if we get more movement on the US yield front that has aided the greenback in finishing higher against most of its FX peers. The gold/silver ratio has been slowly edging back down with silver slightly outperforming against its precious metal cousin over the past two sessions.

IG client^* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

After five consecutive positive trading sessions that lifted oil prices back well above $20, yesterday witnessed a slight drop despite an EIA (Energy Information Administration) surplus that was well below expectations of an 8.5m increase. The reading was only 4.6m. Its price broke past yesterday's 1^st Support level offering some before partially retracing back up to aid contrarian reversals as well. From a technical standpoint, its price is just below its 50-day moving average and above all its main short-term moving averages, with a positive DMI (Directional Movement Index) cross occurring yesterday.

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IG client^* and CoT sentiment for Oil WTI

As for sentiment, retail bias is still majority long but is dropping closer to the middle, standing at just 56% 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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