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Gold and Oil Markets Report – 02 March 2015

A guest post written by DAR Wong and Chong HC

Gold reversed up last week in mild buying interest with bottom formed at 1190.00 levels. The phenomena of stronger Dollar with yellow metal prices are returning but will put double pressure to energy and oil prices. Crude oil inventories continue to surge to 8.4 million barrels last week and put cap on Crude prices. On monthly chart, WTI Crude snapped the 7 long streak declines and closed at USD49.76 per barrel on Friday, enticing many analysts to believe Crude has bottomed out its fall.

Crude Oil

WTI Crude prices closed with reversal up-signal on monthly chart but still weak on daily chart. Immediate resistance stays at 51.00 levels in case of rising prices. The bulls have to clear above 51.00 before facing more selling challenges at 54.00 regions. This week, beware of...

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American GDP Revises Down to 2.2 Percent

A guest post written by DAR Wong

Currency Market Observations - 02 March 2015

Fundamental Outlook

The US inflation slides amid lower Crude prices and home recovery threads in fatigue. Growth has been revised down while Federal Reserve policymaker promises to give enough time for reaction to rate hike. Japan slows down in recovery with contracting inflation in-lieu of high expectation in market to see another new stimulus. European region stagnates.

The US existing home sales grew 4.82 million annualized rates in January after revised annualized rate hit 5.07 million in previous month. Another report by Conference Board of Consumer Confidence retreated to 96.4 in February from prior revised 103.8 reading.

Last week, Federal Reserve Yellen mentioned timetable for interest rates is flexible while employment data is not growing enough to hike rates. She promised plenty of time will be given to notify markets...

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Gold and Oil Markets Report – 23 February 2015

A guest post written by DAR Wong and Chong HC

Gold closed lower on weekly basis while Crude was resisted at 54.00 regions as we forecast last week. EIA report records growth in weekly crude supply by 7.7 million barrels in the week ended 14 February. Dollar index stays in small sideways with little effect on commodity. However, the grant of bailout extension to Greece by another 4 months has lifted the Dow Jones and European markets and may press Gold lower in coming week due to flight of funds.

Crude Oil

WTI Crude prices have revealed weakness in weekly and day charts. The market failed to conquer 54.00 resistances last week and might be heading down soon. Increasing supply and rising Dollar index might be the leading factors to push oil prices lower in coming weeks. Technically, we reckon the support...

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Greece Extends Deadline to work out Austerity

A guest post written by DAR Wong

Currency Market Observations - 23 February 2015

Fundamental Outlook

The US inflation stays weak while FOMC minutes show favor of policymakers leaning to near zero interest rates. Greece wins extended time to work out for debt repayment and has boosted equity prices. UK inflation improves with shrinking jobless claims while policymakers remain unchanged policy in support growth.

The US factory output climbed 0.2 percent while housing starts dropped rose to 1.07 million in January from a year ago, compared to revised 1.09 million in previous annualized data. Producer prices slid 0.8 percent in January after falling 0.2 percent in December due to falling Crude prices.

FOMC minutes release reports that near to zero rates will be maintained for a while since unemployment and low Crude prices have slowed down inflation growth. The Dow average benchmarks advanced 121.09...

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Gold and Oil Markets Report – 16 February 2015

A guest post written by DAR Wong and Chong HC

Gold slid again last week from 1240.00 levels to 1216.00 lows as buyers' confidence waned. Crude has been trading in whipsaw patterns as short-covering appeared before weekend. The US Dollar Index challenged 95.00 resistances again but settled below this benchmark before weekend, which is seen as essential to lead an inverse trend in most commodity prices in coming week. General outlook for commodity demands are still sluggish after recent slowdown in China's consumer prices.

Crude Oil

WTI Crude prices climbed from 48.00 bottoms last week and closed at 52.00 regions on Friday. This week, the market may try to challenge the 55.00 – 57.00 resistances before sliding again. Nevertheless, we foresee a probable phenomenon of seeing Gold and Crude prices diverge again if the energies demand contract. The support is seen at...

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America Business Index Slows Down

A guest post written by DAR Wong

Currency Market Observations - 16 February 2015

Fundamental Outlook

The US economy worries global investors as job market highlights looming recovery after the payrolls slowed down in January. Eurozone hopes to buff up after stimulus has been introduced while Greece will reach debt deadline in early March. UK stays flat in manufacturing from recent production data.

The US wholesale inventories was up 0.1 percent in December and lower than 0.8 percent in previous month, indicating better sales volume over year-end seasons. The small business index fell in January 97.9 and lower than forecast, underscoring the looming sentiment from slower consumer spending.

The US retail sales dropped 0.8 percent in January and below forecast. Excluding autos, core retail sales slid 0.9 percent after making a similar 0.9 percent decline in December. Unemployment claims rose in the week ended 7...

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Gold and Oil Markets Report – 09 February 2015

A guest post written by DAR Wong and Chong HC

Gold unexpectedly dipped below 1255.00 after the U.S. released growing non-farm payroll on Friday. Crude prices re-gained above 50.00 levels and triggered selloff in yellow metals as USDX recovered from 93.00 to near 96.00 highs. Central banks around the world have withdrawn from the rate hike plan due to slow recovery of global inflation. Reserve Bank of Australia (RBA) cut interest rate to 2.25 percent from 2.50 percent last week after Bank of Canada slashed overnight lending rate by 25 basis points to 0.75 percent 2 weeks ago.

Crude Oil

WTI Crude prices revealed some buying interest last week as we predicted previously. This week, we foresee the market will continue to stay amid firm sentiment while it moves from 48.00 – 56.00 regions. Fundamentally, we believe this is just a short-term...

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America Adds Payroll to Maintain Growth

A guest post written by DAR Wong

Currency Market Observations - 09 February 2015

Fundamental Outlook

The US trade deficit increases probably due to more imports. Payroll gains continue to stay healthy but unable to spur rate hike for fighting inflation. UK performs better improvement in recovery but does not qualify for rate tightening due to global slowdown. Reserve Bank of Australia adds into the league of cutting interest rate that may spur more similar actions in coming months.

The US Institute for Supply Management (ISM) releases its index of manufacturing activity fell to 53.5 in January from previous month 55.1. However, the other service index rose to 56.7 from 56.2 in December.

Consumer spending among Americans slid 0.3 percent after a downwardly revised 0.5 percent increase in November. It was the largest drop since September 2009. Crude oil inventories for the week...

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Gold and Oil Markets Report – 02 February 2015

A guest post written by DAR Wong and Chong HC

Gold dipped after FOMC statement that policymakers said interest rates may come earlier than expected. However, the U.S. equity markets behaved in whipsaws after most of big companies reported quarterly losses last week. Report showed American GDP dropped 2.6 percent in final quarter and caused Dow Jones to resume in bearish sentiment. Before market closed for weekend, yellow metal recovered while Crude prices rose from short-covering. Traders are watching the U.S. Dollar index as guidance to lead major market trends.

Crude Oil

WTI Crude prices recovered on Friday after U.S. equity fell due to weaker GDP growth. This is first weekly reversal-up bar after many weeks of declines. This week, we foresee some buying interests will step into market once sentiment of short-covering begins. Range is expected to move from 45.00...

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FED Policymakers Target 2 Percent Inflation

A guest post written by DAR Wong

Currency Market Observations - 02 February 2015

Fundamental Outlook

The US new home sales surprises market with strong gains with surging consumer confidence. FED policymakers stress steady growth in American economy with imminent rates hike. Japan improves on export growth but household spending shrinks due to higher sales tax. German steadies in job growth while UK slips into hawkish outlook for home loans.

The US new homes sales grew 481,000 in December from a year ago while stronger than forecast and prior month. The Conference Board of consumer confidence jumps to 102.9 in January and far better than forecast, probably pulled up by recent Dollar rise.

American orders for core durable goods, excluding transportation and equipment, records at minus 0.8 percent in January against a positive forecast. The US unemployment claims for the week ended 24 January...

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