Oil plummets further into bear market territory, gold and silver retrace
Oil and silver retail bias in extreme long territory, gold long bias rises.
Gold Technical analysis, overview, strategies, and levels
Gold prices were in for a bit of a retreat yesterday as the US dollar relatively outperformed in the FX market, yet that did little to undo its current bull trend technical overview on both the daily and weekly that has been buoyed by recent fundamental factors as no breakthrough has been visible on the coronavirus front just yet. All its main technical indicators continue to flash green on both the daily and weekly chart, but where the gains have been gradual and offering little in terms of buy breakout opportunities intraday.
IG client* and CoT sentiment for Gold
Retail bias remains in heavy long territory, rising 4% to 70%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
More so than gold, silver prices were also in for retracement, and the bull trend technical overview on the daily is showing less signs of holding compared to its precious metal cousin, and needing far less to shift to a more consolidatory outlook. Furthermore, in the FX market the US dollar was a relative outperformer, which has a tendency to hurt the precious metal priced in dollars, and as such in the absence of any further factors silver prices were in for an inverse move lower. Its weekly outlook is more consolidatory but showing long-term positive technical bias, while the daily its price is struggling to breach its short-term resistance level.
IG client* and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
While filling the weekend gap (again) is a positive sign, far more will be needed to undo the current heavy negative technical bias experienced by oil prices which slid later in the session, and where its weekly and daily is expected to be more fundamentally affected by coronavirus fears and its affect on the travel industry and expected future growth as opposed to technical indicators. OPEC+ may have an emergency meeting today/tomorrow, so expect any results to keep oil prices volatile, with Russian and Saudi leadership confirming readiness to cooperate within the OPEC+ format in hopes of placing a floor on recent prices moves. We'll get the first of oil data this evening in the form of API's (American Petroleum Institute) oil inventories change, with last week's 4.3M deficit differing significantly from EIA's (Energy Information Administration) 3.5M surplus.
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%.
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