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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Oil prices rise off the lows despite EIA surplus, gold and silver prices little changed

Retail bias remains extreme long in oil and silver, but profit-taking in the former takes the buy bias lower.

Oil rig Source: Bloomberg

Gold Technical analysis, overview, strategies, and levels

When risk appetite improves in the financial markets, gold prices have a tendency to go into retreat. And yet, despite equities making fresh highs, the safe haven precious metal also managed to recover off the lows to finish slightly in the green in what was a narrow session. A part of that may have to do with how the US dollar performed in the FX market, as it was a slight underperformer, while a larger factor was the upward revision in coronavirus figures that aided safe haven assets. As for US Federal Reserve (Fed) Chairman Powell's testimony in his second day before Congress, he remained upbeat and showed no sign the current central bank policies would see a shift, which will mean the fiat currency could remain in easing mode against gold's more finite supply.

Gold Technical Indicators Source: IG charts

IG client* and CoT sentiment for Gold

Retail bias here remains heavy long standing at a majority buy 68%, far less than that of silver or oil.

Gold sentiment Source: IG charts

Gold chart with retail and institutional sentiment

Gold Source: IG charts

Silver Technical analysis, overview, strategies, and levels

After making a close run towards yesterday's 1st Support level, silver's price movement remained relatively rangebound, and where against gold it took another hit, taking the gold/silver ratio slightly higher. From a technical standpoint, it remains consolidatory with nearly all its main technical indicators neutral, but just above a key support level which roughly coincides with its 50 and 100-day moving averages.

Silver Technical Indicators Source: IG charts

IG client* and CoT sentiment for Silver

Retail bias here is far heavier than that of gold, standing at a staggeringly high extreme long 93%, a notch higher than yesterday’s figure.

Silver sentiment Source: IG charts

Silver chart with retail and institutional sentiment

Silver Source: IG charts

Oil WTI Technical analysis, overview, strategies, and levels

Following API's (American Petroleum Institute) 6M surplus that kept oil prices slightly at bay, EIA's (Energy Information Agency) registered a larger 7.5M surplus, but even before then oil prices were already moving higher prior thanks to improved risk appetite earlier in yesterday’s session before undoing some of those price gains this morning on revised coronavirus (COVID-19) figures. The move higher aided conformist volatile breakout strategies breaching yesterday’s 1st Resistance level in a move towards its 2nd Resistance, but has done little to shake off its current negative technical bias. It remains prone to a break in its pivot points should any fundamental news on the oil front emerge.

Learn more about oil trading.

Oil Technical Indicators Source: IG charts

IG client* and CoT sentiment for Oil WTI

As for sentiment, retail bias has dropped 4% on long profit-taking but remains in extreme long territory at 83%.

Oil sentiment Source: IG charts

Oil WTI chart with retail and institutional sentiment

Oil Source: IG charts

*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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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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