USD weakness aids gold and silver in finishing higher
Precious metals managed to rise off the lows, but oil dips slightly following slight EIA surplus.
Gold Technical analysis, overview, strategies, and levels
Central bank decisions tend to weigh heavily on the precious metal, and especially when it's the US Federal Reserve (Fed) given this commodity being priced in US dollars. A Fed that doesn’t raise rates usually aids non-yielding assets like this one, and with a majority of the central bank’s policymakers not expecting rates to change until 2021, that has hurt the US dollar yesterday which underperformed amongst the FX majors and helped gold's price to a stronger and higher finish. But with that out of the way, there are other factors at play here including fresh trade announcements and geopolitical tensions that could return to focus.
IG client and CoT sentiment for Gold
In sentiment, retail traders that have been range-trading the narrow movement were enticed into closing out some longs initiated at the lows, and in the process pushing yesterday’s extreme long 78% bias 6% lower to 72%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
With the US dollar in retreat in the FX market (and some commodity markets), silver's price managed to finish higher but not enough just yet to offset the current negative technical bias its experiencing. The bulk of its main daily technical indicators remain predominantly neutral, and is expected to remain that way should price continue to oscillate near the lows.
IG client and CoT sentiment for Silver
Although gold retail sentiment dropped yesterday on the price move that occurred there, retail sentiment here hasn’t budged, opting to remain at an extreme long 92%.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
API's (American Petroleum Institute) surplus of 1.4M was followed by EIA's (Energy Information Administration) 0.8M surplus following last week's 4.9M deficit and expectations of another 2.9M drawdown. That has kept US oil prices relatively rangebound near the highs, keeping its bull trend channel intact but also failing to breach its short-term resistance level. A stalling bull trend where the bulk of its main technical indicators are flashing green, and where oil traders (and investors in general) will be tuned in regarding the latest trade developments (if reports that a White House meeting is in store today regarding Sunday’s tariffs) that might dent demand for the energy commodity.
IG client and CoT sentiment for Oil WTI
The lack of change in price has translated into another day of a lack of change in sentiment, with the bias at a majority short 62% the bulk of which are range-trading shorts that’ll be swift to take profit should prices drop back down towards the 200-day moving average.
Oil WTI chart with retail and institutional sentiment
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