Gold, silver, and oil finish higher
Risk-off move aids the precious metal in finishing higher, EIA surprise deficit fails to lift oil prices.
Gold Technical analysis, overview, strategies, and levels
It was a risk-off move in the financial markets yesterday with equities in the red and the bond market improving thanks to US Federal Reserve (Fed) Chair Powell's comments regarding negative rates, as well as worries t the economy and downside risks that helped power gold prices to a higher finish despite the US dollar outperforming in the FX market. However, gold prices failed to reach either of yesterday's key pivot points, opting to partially retrace below its 1st Resistance level. More US data awaits that could cause risk appetite to move, not just with today's unemployment claims but tomorrow's retail data as well.
IG client* and CoT sentiment for Gold
In sentiment, retail traders are still holding a heavy long bias, but fresh range-trading longs were quick to close out on yesterday's moves taking the bias a few notches lower to 74%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
It was another trading session where silver prices failed to reach either of its key pivot points, hugging the relative highs as more positive technical bias builds in the precious metal's price. There was little difference between gold and silver, and hence the gold/silver ratio has been oscillating in narrow ranges. From a technical standpoint, more of its key technicals are starting to flash green, its price above all its main short-term moving averages, a positive DMI (Directional Movement Index), a trending ADX (Average Directional Index), and near the upper ends of its band. That means should a move occur to undo March's plummet, and contrarian breakouts might be the outperforming strategy.
IG client* and CoT sentiment for Silver
It would also be a boon for retail traders who are still holding an extreme long bias of 89%, far more than that of institutional traders.
Silver chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Another rangebound session for oil prices, despite a surprise deficit out of EIA (Energy Information Administration) of 0.7m running in contrast not just to expectations of a 4.1m surplus but also of API's (American Petroleum Institutes) estimate of a sizeable 7.6m surplus the night before. Neither of its key pivot points reached as volatility subsides, with more positive technical bias building in the short-term.
IG client* and CoT sentiment for Oil WTI
Retail traders this time around haven't closed out longs but have added to their positions instead, the bias rising from 54% to 57% as of today morning.
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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