Gold and silver hold their ground despite growing appetite for riskier assets
Heavy long bias in gold continues to drop, while retail short bias in oil grows heavier.
Gold Technical analysis, overview, strategies, and levels
As with the weekly's consolidatory technical overview, it's more so the case on the daily outlook, but with gold's price not that far off both the 50-day and 100-day moving averages (MA), briefly crossing the former yesterday but failing to close above it. Higher highs in equities usually hurts safe haven products like gold, but where the US dollar rests also matters given its priced in dollars. From a technical standpoint, while some indicators are flashing green, its ADX (Average Directional Index) isn’t showing a propensity to trend just yet on the daily outlook (as opposed to the weekly outlook).
IG client and CoT sentiment for Gold
In sentiment, retail long bias continues to drop as the lack of movement entices traders into closing out instead of waiting for a upside trend movement, taking the percentage bias 2% lower to a heavy long 69% and further away from extreme long bias held by larger speculative traders as per last Friday’s CoT (Commitment of Traders) report.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Whatever gains silver's price enjoyed yesterday earlier in the session managed to hold, albeit slightly in what was its sixth consecutive session of gains. The gains overall however, have been limiting at best, and hardly offsetting losses suffered by the precious metal two weeks ago. The technical overview on both daily and weekly remains consolidatory, but there’s still a touch of negative bias when viewing silver’s price in a shorter daily time frame as opposed to the weekly time frame where it has found slightly support.
IG client and CoT sentiment for Silver
As for sentiment, while there’s been a change in percentage, it’s hardly noteworthy with the bias dropping 1% but remaining at extreme long territories at 92%.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
The moves yesterday in oil prices were rangebound and consolidatory, testing its current bull trend technical overview where it has had difficulty posting further gains as it remains at the top of its daily bull trend channel. The first of the main weekly oil data is released late tonight from API (American Petroleum Institute), followed by EIA (Energy Information Administration) tomorrow.
IG client and CoT sentiment for Oil WTI
In sentiment, retail bias continues to push further into heavy short territories as they range-trade the energy commodity, with the bias rising 2% on yesterday morning to a heavy short 67% and in significant contrast to extreme long bias held by CoT speculative traders.
Oil WTI chart with retail and institutional sentiment
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