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Gold and Oil Markets Report – 06 December 2015

A guest post written by DAR Wong and Chong HC

Dollar Index (USDX) dropped on last Thursday after the European Central Bank announced new stimulus that disappointed the traders. Policymakers will extend the monthly stimulus of EUR60 billion for at least another 6 months into March 2017 while cutting deposit rates to minus 0.3 percent. Euro currency rose after the news and pushed the Dollar Index (USDX) down. This week, we reckon Gold and Crude will continue to rise for 1 more week in-lieu of U.S. FOMC meeting on 15 – 16 December.

Crude Oil

WTI Crude prices stayed weak before last weekend despite Dollar slid. OPEC members held meeting and announced unchanged policy in maintaining about 30 million barrels production per day. This week, we reckon the trend will trade in weak demand while ranging from 37.00 – 43.00 regions. Bear trend is more prone to occur in market as the supply glut will threaten the buyers’ demand for wait-and-see attitude.

Gold

Gold prices recovered from 1046.00 low last week after Dollar began to fall. Technically, we foresee price recovery will continue this week to reach 2 major levels at R1 – 1095.00 and R2 – 1120.00 if bulls persist. While the trend is stabilizing at 1080.00 for time being, we have identified the support to lie at 1070.0 levels with much bargain-hunting. Observe the Dollar trend for inverse direction to Gold prices.

Silver

Silver prices floated above 14.000 levels last week and began recovery with yellow metals.Division ratio of Gold/Silver is beginning to turn down that indicates faster escalation of Silver when it runs up with Gold recovery. Technically, we reckon the support will be strong at 14.200 regions and uptrend is likely to continue further. We foresee the bulls will test 15.000 in near future before FOMC in mid-December.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded sideways last week in mild demand. Experts say the prices could rise higher in coming months due to post-effects of El Nino weather changes. February delivery month settled at 2367 on Friday. This week, the trend will probably be supported at 2230 regions and trade higher at 2400 levels. However, piercing above 2400 levels carries potential to reach 2450 levels in case of recovery among all general commodities.

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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