Gold and Oil Markets Report – 09 February 2015
Gold unexpectedly dipped below 1255.00 after the U.S. released growing non-farm payroll on Friday. Crude prices re-gained above 50.00 levels and triggered selloff in yellow metals as USDX recovered from 93.00 to near 96.00 highs. Central banks around the world have withdrawn from the rate hike plan due to slow recovery of global inflation. Reserve Bank of Australia (RBA) cut interest rate to 2.25 percent from 2.50 percent last week after Bank of Canada slashed overnight lending rate by 25 basis points to 0.75 percent 2 weeks ago.
WTI Crude prices revealed some buying interest last week as we predicted previously. This week, we foresee the market will continue to stay amid firm sentiment while it moves from 48.00 – 56.00 regions. Fundamentally, we believe this is just a short-term technical rebound but may begin another slide once the correction completes. Beware of breaking beneath 48.00 supports as the bears might resurge anytime to initiate new selling pressure due to rising Dollar.
Gold prices fell through 1255.00 supports on Friday night and closed at 1233.00 regions for weekend. Technically, we reckon there is a strong support at 1230.00 regions unless the bears could thrash this level to test the next lower support grounds at 1200.00 areas. This week, the trend may thread sideways from 1230.00 – 1260.00 ranges while stabilizing for a technical recovery. However, beware of breaking below 1230.00 supports as this might lead to 1200.00 targets.
Silver prices slumped on Friday with Gold prices. Market fell through 17.000 supports and closed at 16.710 levels. Technically, we reckon the market has a strong support at 16.500 levels while it might trade from 16.500 – 17.500 ranges in coming week. However, piercing below 16.500 supports might find its way down to 16.000 as next support according to Fibonacci theory.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher for weekend as Crude prices recovered. Global bullish sentiment in equity and commodity markets has added strength to the FCPO trend. April contract closed at 2347 on Friday. This week, we foresee the breaking above 2360 might climb higher to 2400 targets if bullish trend persists. However, beware of turning down below 2280 levels as this will resume bearish sentiment.
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 www.traderpromaster.com
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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