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Gold and Oil Markets Report – 05 December 2016

A guest post written by DAR Wong and Chong HC

The Dollar Index (USDX) has begun to fall from 14-year high at 102.00 areas and closed at 100.65 on Friday. Precious metals have found support and may recover in coming weeks. OPEC group has agreed to cut oil supply among the 14 country members to daily 32.5 million barrels. However, market analysts remain skeptical and doubt the agreement will be reinforced. Market investors are observing the FOMC on 14 and 15 December in possible rate hike.

Crude Oil

WTI Crude prices advanced after the OPEC meeting outcome but unable to skip above 52.00 resistances. The trend is still largely constricted from 44.00 – 52.00 ranges unless it could extend beyond this range. This week, we reckon the trading activity may stay within 48.00 – 52.00 in mixed sentiment. Breaking above 52.00 resistance need to abandon your short-view without compromise.

Gold

Gold prices have receded rapidly since Trump victory and declined more than USD170.00 /oz to 1160.00 bottoms last week. Technically, we feel the selling activity has been overdone. This week, market trend is still expected to trade in small recovery from 1170.00 – 1200.00 regions. We expect the trend to recover at 1240.00 regions in January since December should be a short month due to Christmas seasons.

Silver

Silver prices have been holding better and closed above 16.500 levels throughout last week. The market is prone to recover as Gold/Silver ratio chart is preparing to drop again from technical appearance. This week, we foresee the bulls will step into market and lift to 17.250 regions for short covering. Support remains at 16.500 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Friday after being supported by the higher crude oil prices. February contract closed at 3076 with momentum still resilient in market. This week, we foresee there may be correction at 3020 regions while resisted at 3106. However, the bulls may go into free run towards 3160 once it breaks above the aforementioned resistance should Ringgit weaken further.

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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