Precious metals retreat, oil dented as travel sector contracts
Silver underperforms, technical overview on the verge of shifting
Gold Technical analysis, overview, strategies, and levels
The pattern for gold thus far has been to remain relatively unchanged when the US dollar and indices rise in strength, but to surge higher when risk appetite wanes and/or geopolitical risks rise. Such was the case early yesterday morning with Asian indices in the red, before retracing back down for the session and offering a brief buy on reversal off of yesterday’s 1st Resistance level before making another move lower. That has tested its stalling bull trend technical overview, where buy breakout strategies (when initiated) have failed to achieve significant returns. Should equities continue their recovery and gold prices might be at risk of testing fresh lows.
IG client and CoT sentiment for Gold
The lack of follow through to the upside continues to test heavy to extreme long traders, with the bias unchanged for retail traders at 69%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Silver's gains have been relatively small when viewed in comparison to gold's surge, and the drop that followed after yesterday’s brief move higher was harsher as the precious metal underperformed compared to gold. But none of the other precious metals were spared, with both platinum and palladium retracing off the highs in a red session, as the overall attention when it comes to precious metals is more on palladium's bull (and volatile) run to stand near fresh record highs. For silver's technical overview, its main technical indicators are starting to get tested, with its price crossing below the last of its main short-term moving averages (MA) and just above its 100-day MA, needing little to shift its current stalling bull trend technical overview.
IG client and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
In the absence of a significant supply shock, oil prices have failed to hold onto recent gains made at the beginning of the year, despite geopolitical tensions in both Libya and Iraq with the former aiding the energy commodity in starting the week with a gap higher. A part of that has been due to travel and airline stocks getting hit on the virus, which has a tendency to affect appetite for energy in general and may explain the plummet in (most) energy prices yesterday. The lack of oil data until tonight's API (American Petroleum Institute) has meant that the focus has been on global demand. From a technical standpoint, with main indicators are huddled closely to each other, and a shift in its overview won't take much with a trending ADX (Average Directional Index).
IG client and CoT sentiment for Oil WTI
Oil WTI chart with retail and institutional sentiment
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