Positive technical bias forms in gold and silver, oil edges slightly higher

Gold Technical analysis, overview, strategies, and levels

We finally got some movement in gold prices following days of relative oscillation, though the gains were relatively limiting and thus far have remained below its short-term resistance level, which in turn isn’t that far off its 100-day moving average as seen on the daily price chart, which would mark the last of its main long-term moving averages it would need to cross. While a slight bull trend line is forming, yesterday’s gains can be partly attributed to a weakness in the greenback in the FX market, and with indices making fresh record highs the recent gains could remain tested, unless we see a reversal in risk appetite.

IG client and CoT sentiment for Gold

Retail bias hasn’t budged opting to remain at a heavy long 70% anticipating further price gains, and it’s unlikely the next CoT (Commitment of Traders) report will show a significant unwinding of extreme long bias held by larger speculative traders.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

In terms of comparative performance, Silver was the outperformer against gold, and for the third consecutive day the gold/silver spread price dropped. While further price drops in the spread can’t be ruled out given how high the difference between the two precious metal cousins reached, they both outperformed against a weakened US dollar in the FX market, and hence greenback appetite ought to be noted. That aside, more technical bias is forming here, and where a positive DMI (Directional Movement Index) cross has occurred, with its price nearly past the last of its main moving averages, the 100-day MA.

IG client and CoT sentiment for Silver

The bulk of longs have been initiated at higher price levels, and hence retail bias will likely show a lack of change from its current extreme long 91% bias.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

The moves in Oil prices remained relatively consolidatory with liquidity set to get even lighter, but the energy commodity did manage to finish higher for the session even if it failed to reach its upper pivot point as its bull trend technical overview on the daily outlook continues to stall. In terms of data, API (American Petroleum Institute) will be releasing its figures tonight, and we won't get EIA's (Energy Information Administration) figures until Friday due to the holidays, where it will be followed by Baker Hughes' US oil rig count. In OPEC+ news, Russia said they (and their OPEC allies) may consider easing output cuts at their next meeting in March.

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IG client and CoT sentiment for Oil WTI

Oil WTI chart with retail and institutional sentiment

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