Gold and Oil Markets Report – 02 February 2015
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.
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 – 52.50 regions with bullish interest once Dollar strength drops. However, violation beneath 45.00 supports could spell danger for another round of market tumble!
Gold prices slipped from 1299.00 to 1251.00 regions but recovered largely on Friday to 1293.00 regions. Technically, we predict the strength is still potential in precious metals as safe haven in case equity markets fall in coming week. Technically, we foresee the support will emerge at 1260.00 regions and crossing above 1300.00 benchmarks will pose sign for another bull run to 1325.00 levels in near future.
Silver prices formed strong bottom support at 16.735 last week. We reckon the trend will move from 17.000 – 18.000 regions in coming week while sentiment will be prone to bullish trend. The technical outlook shows resilient support at 16.500 regions and initial reversal trend for moving up again. Long traders should adopt risk management though planning to aim for higher prices in coming weeks.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 2147 after the trend traded weak sentiment. April delivery contract narrowed in spread over May delivery as outright market trend fell. This week, we foresee the market might recover due to short-covering while sitting on 2110 supports. Topside range may reach 2210 regions in case of strong sentiment builds up in market.
This post is contributed by OPF Guest Bloggers, DAR Wong and Chong HC
DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 24 years of trading and hedging experiences while HC trades for 6 years and now coaches institutional customers. They can be reached at www.traderpromaster.com
DISCLAIMER: This post is written for general information only. The author, publisher and/or any third party involved in the distribution of this work assume no legal responsibilities and shall have no liability whatsoever for any direct or consequential losses, costs or expenses arising from the use of the information contained herein.
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