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Gold and Oil Markets Report – 04 May 2015

A guest post written by DAR Wong and Chong HC

Dollar Index traded lower to 95.00 regions after US FED policymakers confirmed no immediate rate hike from last week meeting. General commodity prices and Crude recovered except metals. Dow Jones benchmark has been moving in steadfast pace that pulled the fund out of Gold and Silver instruments. Weekly Crude inventory was reported at 1.9 million barrels as of 25 April and lesser than previous week 5.3 million barrels, thus supporting oil prices.

Crude Oil

WTI Crude prices continue to climb for recovery amid receding Dollar strength. There has been no essential news in the oil market though the Saudi Arabia said the state enterprise Aramco will be separated from Oil Ministry to stay transparent. This week, we foresee the oil prices will continue to move higher at 62.00 before correction steps into market. Immediate support should lie at 54.00 areas in case of drawdown.


Gold prices slid from 1215.00 highs last week and closed at 1178.00 on Friday, disappointing the long traders. The technical outlook reverses into uncertainty for coming week as market has built up mixed sentiment. In our opinion, the trend will be supported at 1160.00 regions in case of continual fall. However, it may also stay sideways but temporary will be capped at 1200.00 as the immediate resistances.


Silver prices climbed up initially last week and resisted at 16.750 levels. Market closed lower at 16.100 for weekend and has moved back into consolidation. This week, we predict the support will lie at 15.750 in case of continual slide in prices but market will probably move sideways from the range of 15.750 – 16.750 regions. We predict the recovery in Gold and Silver will take place when Dow Jones market begins to weaken again.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives Futures traded in weak demand last week. The price plunge came from supply glut and also narrowing premium between soy oil and palm oil. Down trend is expected to continue in coming weeks. July contract closed at RM2102 per ton on Thursday for a long holiday weekend. This week, we reckon there may be small pull up to 2130 regions before sliding down again. Support is seen at S1 – 2040 and S2 – 2000 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 24 years of trading and hedging experiences while HC trades for 6 years and now coaches institutional customers. They can be reached at

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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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