Gold and silver finish higher, oil oscillates
Silver outperforms again, gold/silver ratio drops yet again.
Gold Technical analysis, overview, strategies, and levels
A slight risk-off mood yesterday in the financial markets and a US dollar that didn't strengthen in the FX market against the remaining FX majors meant gold prices had some room for growth, reaching yesterday's 1st Resistance level this morning and in turn doing little to offer a pivot point play. In central bank news, we'll get the Fed's (US Federal Reserve's FOMC) minutes later today, with little else out of the US that could impact the greenback or risk appetite, meaning attention will likely remain on equities to see if they can shrug off yesterday's plummet.
IG client* and CoT sentiment for Gold
Despite the price increase, retail long positions haven't dropped, holding on waiting for further pricing gains in the precious metal.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
It was another day where silver prices outperformed compared to gold, taking the gold/silver ratio lower for a fifth consecutive session. While silver prices crossed and finished above yesterday's 1st Resistance level, it wasn't before testing breakout strategies by significantly retracing first back down before making a second run higher. The five consecutive days of price gains for silver is gaining more attention in the financial markets and enticing fresh longs.
IG client* and CoT sentiment for Silver
Retail sentiment remains in extreme long territory, rising from 86% to 89% as although the price gains may entice longs into getting out, their preference recently is to hold anticipating further gains.
Silver chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Oil prices were mostly rangebound yesterday dropping to just above yesterday's 1st Support level before moving back up, aided late in the evening by API's (American Petroleum Institute) 4.8m deficit. EIA's (Energy Information Administration) oil inventories estimate is up next expected to show a 1.7m surplus, though given last week's surprise deficit traders will be noting a potential larger difference between actual and estimates. From a technical standpoint, the short-term Daily overview remains more bullish but open to volatile movement in either direction on a general increased uncertainty despite lockdown restrictions easing.
IG client* and CoT sentiment for Oil WTI
As for trader bias, retail sentiment is majority long and rising, standing at 60% as of this morning as fresh longs continue to reinitiate anticipating further gains.
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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