Gold and silver consolidate while API tests oil’s recent gains
Fresh record highs in US equities fails to dent appetite for precious metals, while oil prices retrace off fresh highs on an API surplus.
Gold Technical analysis, overview, strategies, and levels
Even as indices were making record highs, gold's price has managed to avoid dropping in value, and where in the FX market the US dollar’s performance was in the middle against the other FX majors. Overall however, the gains have been limiting than when we have a 'risk-off' event where safe haven is snapped up, and could be suggestive that even in times of improved risk appetite, investors still prefer to hold a portion of their portfolio in the precious metal to guard against downside risks. That is keeping its technical overview consolidatory whereby the bulk of its main indicators remain neutral.
IG client and CoT sentiment for Gold
The lack of significant change in price has resulted in a lack of significant change in sentiment, with heavy long bias rising 1% amongst retail traders to 70%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
As with gold, silver's price was most in consolidation, and a slight finish lower failed to undo six consecutive trading days of gains that preceded it. Most of its main technical indicators remain neutral on both the daily and weekly outlooks, but combined with a trending ADX (Average Directional Index) in need of other technical indicators to confirm a direction, be it to the upside or downside. A lack of volatility aids conformist technical overview strategies that remain relatively range-bound, but should volatility pick up and contrarian strategies may be more ideal.
IG client and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Given oil prices stand at the upper end of the daily bull trend channel, it has been testing majority short retail traders awaiting a price move back down to unwind (some averaged-in) shorts. API's (American Petroleum Institute) reading yesterday showed a 4.7M surplus which forced the energy commodity into retracing somewhat later in the session, and up next is EIA (Energy Information Administration) today expected to show a 1.5M deficit. The technical overview remains bullish, but intraday gains have been limiting at best, and testing breakout buy strategies in the process, even if it conforms to its current technical overview.
IG client and CoT sentiment for Oil WTI
In sentiment, the breach higher has pushed majority short retail bias into heavier territory, up 4% since yesterday and at 71% as of this morning.
Oil WTI chart with retail and institutional sentiment
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