Oil prices briefly rally following Saudi output cut
Silver outperforms against gold again, but both fail to offer breakout opportunities.
Gold Technical analysis, overview, strategies, and levels
It's been another non-story for gold prices, which oscillated near the highs once again and failing to offer pivot point action. The US dollar was an outperformer which usually would keep anything priced in dollars (like gold) from rising significantly, and in the equities market it was a mixed session with this morning's drop in Asia aiding the precious metal slightly. The New York Fed announcing it would start corporate bond purchases today means more USD liquidity in the financial system, but it can also promote a risk-on atmosphere that would see investors rush to equities anticipating further gains.
IG client* and CoT sentiment for Gold
In sentiment, retail bias is nearing extreme long levels due some traders range-trading the narrow price moves, but expect that bias to drop should prices make a significant move higher.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Silver prices were in for another oscillatory session, but the technical overview is starting to show significant positive bias with its price above all its short-term moving average, a positive DMI (Directional Movement Index), and a trending ADX (Average Directional Index). That being said, as it nears an important short-term resistance level, fading strategies might be at bigger risk of losing out once volatility does spike, even if to the downside. And with silver outperforming compared to gold, the gold/silver ratio dropped for a fifth consecutive trading day.
IG client* and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Oil prices were in for intraday volatility but settled close to where it opened, as news that Saudi Arabia was cutting output by a further 1m bpd (barrels per day) for June, making reductions for May, and both the UAE and Kuwait following by cutting a total 180,000 bpd sent oil prices briefly higher. Coronavirus cases are expected to rise in the coming days as lockdown restrictions ease, but given the economic consequences of a full lockdown it's unlikely we'll see a massive drop in transportation again, and could give a mid-term support on oil prices barring any short-term volatility. In oil data, we've got API's (American Petroleum Institute) oil inventories estimate tonight.
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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