Gold and oil oscillate, silver finishes higher

Gold Technical analysis, overview, strategies, and levels

It's been volatile on the geopolitical front as tensions have failed to subside in a number of areas, but it hasn't translated into volatility for gold prices that reached just above yesterday's 1^st Support level and in turn failed to offer any pivot point play. A lack of recent volatility has seen more of its short-term technical indicators shifting back to neutral, with its price just above its 50-day moving average having failed to close below it yesterday, and combined with a trending ADX (Average Directional Movement Index). The wild card here continues to be liquidity concerns that could undo the precious metal's price gains, and entice sell strategies over buy ones in the event of a potential retracement.

IG client^* and CoT sentiment for Gold

In sentiment, a lack of change in price usually results in an unchanged percentage bias, with retail traders still holding a heavy long bias of 68%.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

Unlike gold, silver prices managed to finish higher yesterday and outperform, even if it didn't reach either end of yesterday's key pivot points as its bull trend technical overview continues to stall within these levels and offering little if any intraday momentum beyond its average ranges. The US dollar's performance in the FX market was also in the middle when compared to the remaining FX majors. A positive DMI (Directional Movement Index) combined with a trending ADX is usually more bullish, especially with its price above all its main moving averages. That being said, given the close proximity of the technical indicators to each other and to price, more is usually needed in this precious metal to convince traders of upside potential on an account of the ease in producing false signals under current circumstances.

IG client^* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Oil prices remained relatively rangebound yesterday failing to offer a pivot point play, with little needed at this stage to shift its technical overview from volatile (thanks to April’s volatility). In oil data, EIA's (Energy Information Administration) estimate showed a 1.2m surplus, above expectations and below API's (American Petroleum Institute) reading the night before. As for oil news, OPEC+'s virtual meeting of its technical committee did not make any recommendation for further cuts, opting instead to focus on members failing to adhere to the current agreement already in place. Laggards are expected to present today how they'll make up for extra production in May and June.

Learn more about oil trading.

IG client^* and CoT sentiment for Oil WTI

The lack of a trend move may start to entice traders into range-trading for short-term profit-taking, with yesterday slight decline taking heavy long bias of retail traders up to 65%.

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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