Gold and silver recover on risk aversion, oil prices plummet on EIA surplus

Gold Technical analysis, overview, strategies, and levels

In the FX market, the US dollar was a relative outperformer, and usually in the absence of any geopolitical and risk updates it has been an inverse relationship with the dollar's performance that has led in terms of where gold prices move towards. However, with coronavirus fears rising, gold managed to outperform and recover with a green session, crossing back above the last of its main short-term daily moving averages. More fundamental items await, this time in the form of US preliminary GDP (Gross Domestic Product). From a technical standpoint, its bull trend overview has remained somewhat tested, with any gains done in a retraceable manner. In sentiment, retail bias has edged higher, as traders generally hold majority long bias in the precious metal.

IG client^* and CoT sentiment for Gold

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

There’s little left to force a technical overview shift for this pair, though silver prices also gained during yesterday’s session despite a stronger US dollar, and where its price remains below all its main short-term moving averages but crossed back above its 100-day moving average. Should the US dollar continue to outperform in the FX market, and it’ll be difficult for breakout strategies to offer significant upside follow through.

IG client^* and CoT sentiment for Silver

In sentiment, silver's retail bias remains in extreme long territory rising a couple notches to 93%, while other precious metals like platinum are at an extreme long 78% and palladium at an opposite full short 100%.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

With nearly all its main technical indicators flashing red and combined with a trending ADX (Average Directional Index), the overview has been more volatile on any fresh updates, as oil prices hit on expectations of weakened air travel, a travel industry under pressure, and expected dents in economic growth have failed to see significant upside potential thus far. In economic data, yesterday's EIA (Energy Information Administration) showed a 3.5M surplus in oil inventories, and following API's (American Petroleum Institute) 4.3M deficit prior. US advance GDP is the next key item to be on the look out released later today prior to tomorrow's Chinese manufacturing PMIs (Purchasing Managers Index) and Eurozone preliminary GDP.

Learn more about oil trading.

IG client^* and CoT sentiment for Oil WTI

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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