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Gold and Oil Markets Report – 03 May 2016

A guest post written by DAR Wong and Chong HC

Gold prices rallied up on Friday after submerging for 2 weeks. Yellow metal closed above 1290.00 for the weekend amid the slide in U.S. Dollar Index (USDX). Bank of Japan refrains from adding more stimulus and pushes Yen to 6-month high against Dollar causing the USD/JPY to drop. Crude prices have traded higher above USD45.00 per barrel while Dow Jones Industrial Average (DJIA) closed 18,000 levels on Friday and might trigger new selling forces in coming week.

Crude Oil

WTI Crude prices have been recovering above USD30.00 per barrel since early March. Despite global supply glut, prices are still climbing while reacting to receding Dollar Index and short-covering activity. Technically, we reckon the range will move from USD40.00 – USD50.00 regions for time being in mixed sentiment. This week may be prone to either direction as uncertainty still looms in global market.

Gold

Gold prices resumed bullish trend on Friday and closed near to intra-week high above 1290.00 levels. This week, we reckon the trend may continue to conquer above 1300.00 as we predicted few weeks ago. Support will lie at 1270.00 areas in case of quick correction. Technically, we forecast the next target will aim at 1340.00 in near future.

Silver

Silver prices have continued to ascend at faster rate than Gold when both rally. This week, we predict the market might do correction downward and make base at 16.50 regions. However, beware of fund flight out of stock market and move into precious metals. In case of piercing above 18.00, the trend may aim at 18.50 targets in line with Gold trading above 1310.00 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives declined on last Friday and hit the 7-week low. Export slows down and affect market demand. July contract closed at 2592 amid decline in open interest. This week, we foresee the trend will likely to recover at 2650 regions before another selling pressure kicks in. Support lies at 2550 levels.

Dar Wong

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 26 years of trading and hedging experiences while HC trades for 7 years and now coaches institutional customers. They can be reached at www.traderpromaster.com

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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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