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Gold and Oil Markets Report – 23 January 2017

A guest post written by DAR Wong and Chong HC

Crude inventories continue to cut lower on weekly basis filed by EIA. Production from OPEC members also reduced from market sources that lifts the Crude prices off USD50.00 per barrel. Dollar Index (USDX) trades lower after Trump comments on stronger Dollar may jeopardize trade recovery of U.S. exports. Gold and Silver have been trading in firm sentiment throughout last week.

Crude Oil

WTI Crude prices have been trading sideways from 50.00 – 54.00 range amid cautious activity. Traders are observing the official number on OPEC production after January ends. Meanwhile, no directional trend is forecast but a lower Dollar Index beneath 100.00 benchmark might push the WTI Crude on higher demand.

Gold

Gold prices topped 1218.00 region last week and receded. This week, the trend may correct at 1190.00 before climbing again. However, the...

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Chinese Yuan Recovers in Gradual Pace

A guest post written by DAR Wong

Currency Market Observations - 16 January 2017

Fundamental Outlook

The U.S. economy reveals slight growth in inflation through consumer retail sales and producer prices. China trade surplus expands at slower pace while Yuan gradually recovers. U.K. maintains domestic growth despite export slows down.

The Energy Information Administration reports that weekly Crude inventories increased 4.1 million barrels and much higher than forecast. The weekly unemployment claims dropped to 247,000 in the week ended 7 January.

The U.S. retail sales jumped 0.6 percent in December after revised 0.2 percent gains in November. Core retail sales, excluding automobiles, grew slower at 0.2 percent after November gain was revised at 0.3 percent. Another report on producer prices rose 0.3 percent during last month.

China’s consumer prices grew 2.1 percent in December from a year ago versus 2.3 percent annual growth in previous month....

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Gold and Oil Markets Report – 16 January 2017

A guest post written by DAR Wong and Chong HC

Market is anxiously waiting for Trump to take over Presidential office on 20 January and observe his policy in influencing the Dow Jones benchmark. Gold and Silver prices traded in higher prices last week while Crude prices still swung sideways. Observation of OPEC members in cutting supply will be closely monitored in January for moving the direction in Crude prices. Dollar Index (USDX) returned to 103.00 high on Friday.

Crude Oil

WTI Crude prices have been trading from 50.00 – 54.00 range while waiting for more fundamental influences. Technically, we could not see any clue for leading the directional trend until we read the final production of OPEC members in January month. Meanwhile, traders are advised to set their risk control if the prices trade beyond the aforementioned range and in adversity to...

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U.K. Shows Growth after Brexit

A guest post written by DAR Wong

Currency Market Observations - 09 January 2017

Fundamental Outlook

The U.S. manufacturing and services grow despite payroll decline. China remains firm expansion as Yuan rebounds. U.K. indicates advancement in manufacturing and services after BREXIT vote but traders remain alert for coming execution.

The U.S. Institute of Supply Management releases its manufacturing index rose to 54.1 in December, consecutively gained for fourth month and best record in past 2 years. Another report on services index expanded 57.2 and same level as November.

American weekly claims for jobless benefits dropped to 235,000 for the week ended 31 December probably due to holiday seasons. FOMC minutes reveals further rate hike is possible in 2017 while market traders expect 2 more credit tightening under Trump policy.

The U.S. monthly payroll fell to 156,000 in December after reported 204,000 in prior month. Unemployment rate...

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Gold and Oil Markets Report – 09 January 2017

A guest post written by DAR Wong and Chong HC

The Dow Jones Industrial Average index advanced last week and fell short from 20,000 major benchmark before weekend. Traders expect the eventual jump above this new historical high record after Trump steps into White House on 20 January. Gold and Silver have recovered on weekly basis as USDX trades in sideways trend.

Crude Oil

WTI Crude prices stand strong above USD50.00 /barrel. Crude inventories reported by U.S. EIA has been cut by 7.1 million barrels on weekly basis while traders expect OPEC to cut supply starting from January. This week, the trend may trade from 52.00 – 55.00 range while waiting for more fundamental news. Beware of breaking beyond in either direction that might catch you off guard!

Gold

Gold prices traded off 1122.00 low in December and has been moving into short covering....

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Federal Reserve Raises 25 Basis Points in Interest

A guest post written by DAR Wong

Currency Market Observations - 19 December 2016

Fundamental Outlook

The U.S. Federal Reserve raises 25 basis points in FED fund interest. Japan indicates confidence among large manufacturers from lower Yen value. Bank of England holds interest rate unchanged in year-end meeting. Inflation increases in U.K. despite slowdown in housing demand.

The U.S. retail sales grew 0.1 percent in November and shrank from 0.6 percent in previous month. Core retail sales, excluding automobiles, also expanded at slower pace 0.2 percent. Producer prices rose 0.4 percent and better than forecast.

Another report on U.S. industrial production, contracted 0.4 percent and down from revised 0.1 percent gains in October. Consumer prices stagnated at 0.2 percent in November and core prices, excluding food and energy, also rose 0.2 percent. Both matched forecast.

The U.S. FED Philadelphia manufacturing index jumps to 21.5 in December,...

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Gold and Oil Markets Report – 19 December 2016

A guest post written by DAR Wong and Chong HC

The U.S. Federal Reserve tightened interest rates by 25 basis points on last Thursday in FOMC meeting. Precious metals declined to lower prices before weekend. Gold prices moves back to February low while Silver challenges 16.000 levels that is last seen in June. Crude prices also trade firmly above 50.00 benchmarks despite USDX floats strongly above 102.00 levels.

Crude Oil

WTI Crude prices have been holding above 50.00 while closed at 52.00 regions. This week, little action is expected in market and support will continues to hold at 50.00 areas until January. Topside resistances are seen at 55.00 areas in-lieu of traders observing the global production cut in next month. Shrinking supply is expected to lift the prices back to 60.00 if the OPEC members could keep their promise.

Gold

Gold prices broke 1150.00...

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European Central Bank Extends Stimulus

A guest post written by DAR Wong

Currency Market Observations - 12 December 2016

Fundamental Outlook

The U.S. economy turns into expecting inflation as services and factory order increase. China reports inflation growth while Japan increases in current account surplus. Italy opts for rejection in national referendum to reforms. Britain gains in trade balance but housing demand wanes in construction.

The U.S. Institute of Supply Management reports the services index at 57.2 and highest since January. Factory orders for October rose 2.7 percent unexpectedly after the previous month was revised to 0.6 percent gains. Another report on trade deficits widened to USD42.6 billion in October and worse than USD36.2 in September.

American jobless claims for the week ended 3 December was reported at 258,000 and matched forecast. The University of Michigan reports the consumer sentiment for December at 98.00 and highest in almost 2 years, from...

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Gold and Oil Markets Report – 12 December 2016

A guest post written by DAR Wong and Chong HC

The Dollar Index (USDX) returned to above 101.00 benchmarks on Friday close while Dow Jones markets reached historical new highs again. Demand in Gold weakened again but Silver prices were holding quite firm before weekend. Crude prices have been trading around USD50 /barrel without clear direction. Market oil traders are watching the execution of oil production cut in January before prices could ascend again.

Crude Oil

WTI Crude prices are resisted beneath 52.00 though it is trading in tight range above 50.00 benchmarks. Technically, we reckon the market movement will be ranged from 48.00 – 52.00 regions as we move into quiet year-end trading. January will be an important month to follow the action of OPEC execution in production cut before we could forecast the price direction.

Gold

Gold prices traded down to below...

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American Payroll Rises above Expectation

A guest post written by DAR Wong

Currency Market Observations - 05 December 2016

Fundamental Outlook

The U.S. payroll rises while unemployment lowers to best record this year. China remains strong in manufacturing. OPEC group agrees to cut oil production from January onward to 32.5 million barrels per day. U.K. reports growth in mortgage borrowings and manufacturing.

The prelim GDP of U.S. economy in Q3 grew 3.2 percent and better than forecast. The Conference Board of consumer confidence gained to 107.1 in November and so far best record in this year.

The U.S. personal spending rose 0.3 percent in November but lower than revised 0.7 percent in October. Personal income grew 0.6 percent and beat 0.4 percent. Another report on pending home sales grew 0.1 percent in October and worst in past 4 months.

The U.S. Institute Supply Management reports manufacturing index rose to 53.2 in...

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