Gold finishes higher while silver and oil oscillate

Gold Technical analysis, overview, strategies, and levels

Although gold prices rose higher during yesterday's session and finished higher above its 50-day moving average (the last of its main long-term moving averages), it failed to break yesterday's $1,600 resistance level in a test of conformist breakout strategies that outperformed the day before, and aiding contrarian reversals instead. Big US data will be released over the course of the next two days, and simultaneously attention will be on coronavirus figures that have been rising in the US. Overall, the current uncertain atmosphere has remained a boon for physical gold, and whether or how long it will take to allow prices in the financial markets to catch up remains yet to be seen.

IG client^* and CoT sentiment for Gold

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

It was another session of relatively little movement for silver prices, and in turn ending the day close to where it started. The lack of change in silver prices combined with the increase in gold prices translated into a slight increase in the gold/silver spread, but hardly noteworthy in the overall rise in the spread to record highs late last month. Most of its technical indicators are neutral but with a trending ADX (Average Directional Index), and where its price remains below all its main long-term moving averages.

IG client^* and CoT sentiment for Silver

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Oil prices remained glued to the lows and weren't aided by EIA's (Energy Information Administration) massive 13.8mn surplus that at last confirmed fears that the plummet in demand which has now reached the US on a much larger scale combined with the oil majors engulfed in a price war has resulted in a surge in oil inventories. In oil news, the US President said he expects a deal within a few days between Russia and Saudi Arabia (contrasting prior reports from officials downplaying the attempt), and invited oil chiefs to the White House. Some US shale producers and Texas regulators were already calling for some sort of production cut. In shale news, Whiting Petroleum filed for bankruptcy protection yesterday, in what is expected to be the start of a wave of bankruptcies for the high-cost oil-producing sector in the US.

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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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