Gold, silver and oil finish the session lower

Gold Technical analysis, overview, strategies, and levels

Gold prices were volatile yesterday moving within its Weekly 1^st Resistance and Support levels, though should the current volatility persist and it's likelier than not that pivot points are at risk of eventually breaking. US yields have been plummeting as investors expect a recession, and as a result is usually a positive factor for the non-yielding precious metal's attractiveness in the current uncertain atmosphere. Big rate cuts are still priced in for the Fed for next week, though markets await coordinated stimulus from governments and central banks, the latter likely to aid gold prices given it will involve further easing. Until then, with rising volatility and uncertainty its technical overview remains volatile, as tempting as it may be to view it as bullish given nearly all its main technical indicators are flashing green.

IG client^* and CoT sentiment for Gold

Retail bias has risen 6% to a heavy long 73%, not just on shorts getting out but also on longs initiating at the highs anticipating further price increases.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

As with gold, it was a volatile session for silver with its price going below yesterday's Weekly 1^st Support level for a sell breakout opportunity for limited profit-taking, before retracing back up in a volatile session. And while silver is outperforming against gold this morning, yesterday it was an underperformer with the gold/silver ratio breaching the 100 level.

IG client^* and CoT sentiment for Silver

Retail trader bias while still in extreme long territory has dropped 4% to 89%, with usually a drop in sentiment occurring when its price increases.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Oil prices were the focus of yesterday's trading session following its plunge as an oil price war gets underway for market share in a market that has less to offer thanks to plummeting demand due to the coronavirus. The energy commodity's price ending the session in a volatile manner with a move beyond the Weekly 1^st Resistance level and aiding both conformist and contrarian strategies in the process. What the oil majors intend to do in light of recent events will likely be a stronger factor, and making oil data this week like that of tonight's API (American Petroleum Institute) less likely to leave a lasting impact on oil prices.

Learn more about oil trading.

IG client^* and CoT sentiment for Oil WTI

In sentiment, retail bias remains in extreme long territory at 85% only down a notch, with nearly all those long positions initiated at higher price levels and in need of further price moves back up.

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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