Oil partially recovers while silver retreats

Gold Technical analysis, overview, strategies, and levels

Gold prices surged higher on Thursday following more central bank easing out of the US to breach last week's Weekly resistance levels in line with its current volatile technical overview, and aiding Thursday’s daily conformist breakout strategies as well after getting tested on Tuesday and Wednesday. The US dollar has been the underperformer in the FX market as of late, and that combined with increased uncertainty and a worsening economic outlook has given the safe haven precious metal a leg to stand on.

IG client* and CoT sentiment for Gold

It was also a boon for retail traders with some longs closing out and a few contrarian shorts initiating at the mid-term resistance level anticipating some form of a retracement, with the bias dropping from a heavy long 77% to 72%. As for CoT (Commitment of Traders) speculators, the bias is little changed and remains in extreme long territory.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

It was a third successive week of outperformer for silver prices when compared to that of gold, with the gold/silver ratio dropping back down into the 110s and further away from the record high 126s posted last month. The US dollar has been the underperformer as of late, and silver prices were able to breach last week's Weekly 1^st Resistance early on before struggling to post fresh intraday gains.

IG client* and CoT sentiment for Silver

In sentiment, retail bias isn't dropping but rising instead to an extreme long 93%. As for larger speculators, the bias remains a heavy long 74% on small reductions in long positions by 579 lots and a simultaneous increase in short positions by 582 lots. They also remain majority long in platinum and palladium.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Oil prices were in for a rude awakening late last week, partially recovering this morning on a deal between the oil majors at last that could involve an output cut reduction of up to 20% of global output during the oil price war, though still failing to balance out against a bigger reduction in demand thanks to the coronavirus. In oil data, Baker Hughes US oil rig count showed another successive big drop, to 504 from 562 prior as more higher cost rigs get idled due to what has been persistent lower oil prices. With an oil deal now agreed upon, the question mark will remain the effects of the coronavirus on the economy and the ongoing increase in cases that might extend lockdowns, and in turn dent energy demand.

Learn more about oil trading.

IG client* and CoT sentiment for Oil WTI

As for trader bias, retail sentiment is in extreme long territory as fresh shorts were enticed into closing out on the price drop, while CoT traders have increased their long bias back into extreme long territory at 79%.

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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