Gold and oil both finish higher, tested on trade talk confusion
Retail long bias in both unchanged on the price gains.
Gold Technical analysis, overview, strategies, and levels
After gapping higher and finishing higher in yesterday's session, gold prices were in for a bit of volatility this morning. Confusing trade talk was to blame for the early moves, though that aside the focus for today could well be on preliminary manufacturing and services PMIs (Purchasing Managers Index) and the picture it'll paint in terms of economic recovery. On the geopolitical front tensions haven't subsided in a number of hotspots, and more fiscal stimulus talk and plans are expected out of the US (which in turn would rely on monetary stimulus). From a technical standpoint, most of its main daily technicals are flashing green, and in the current climate may point to increased volatility after what has been oscillatory moves within the $1680-$1740 ranges.
IG client* and CoT sentiment for Gold
Retail bias is unchanged at a heavy long 66%, with any further gains likely doing the opposite and enticing more longs into initiating anticipating even fresher highs, and in turn increasing exposure to a downside squeeze.
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
The weekend gap lower in oil was easily covered and ended in a higher finish yesterday for the energy commodity. The trade talk scare did send its price below the $40 handle before partially recovering, and expect the attention to shift towards manufacturing PMIs and lockdown restrictions easing even as coronavirus cases spike, with both transportation and travel key items when it comes to demand for oil. There will also be API's (American Petroleum Institute) oil inventories reading released later tonight, though as always tomorrow’s more encompassing EIA estimate could potentially have a more lasting impact on short-term oil price movement.
IG client* and CoT sentiment for Oil WTI
In sentiment, retail long bias is still at a slight 52% and unchanged since yesterday 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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