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Gold and Oil Markets Report – 04 April 2016

A guest post written by DAR Wong and Chong HC

Gold and Silver still whipsaw last week while USD Index traded lower. Crude demand edges lower due to contracting supply glut and liquidation of profits. Stock prices have maintained supporting trend after American payroll suggested delayed rate hike. FED Yellen remains hawkish in her speech and abstains from committing credit tightening too fast into market.

Crude Oil

WTI Crude prices trades weaker despite the weekly inventories have been reduced to 2.3 million barrels from previous week of 9.4 million barrels. Technically, we foresee the prices will fall back to 34.00 as consolidation while resistances emerge strong at 40.00 areas. On fundamental studies, global supply glut still threatens many oil producers from suffering losses and might see weakening sideways in price trend for a while till end of Q2.

Gold

Gold prices trades sideways throughout whole of last week. The technical pattern still maintains possibility of recovery if it does not break below 1200.00 levels. This week, we reckon the support will stay at 1210.00 regions while the bulls might resurge to 1250.00 levels. In case of settlement above 1260.00 levels, there is huge possibility of ascending higher in coming weeks.

Silver

Silver prices fell back below 15.000 benchmarks on Friday and settled at this regions for the weekend. The Gold/Silver ratio returns to 81.00 regions that suggests an imminent buy up in Silver prices could be possible in coming weeks. Hence, we predict the range for this week will recover from 14.800 supports to 15.500 areas. Breaking above 15.500 will resume new up trend in market.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives climbs higher on weekly basis. Supply cut in market has helped to push the demand due to weather changes. April contract closed at 2748 with mild liquidation. This week, we may the trend may recede for small correction at 2680 regions. Breaking above 2800 will ascend to 2850 as our next targets.

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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