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Gold and Oil Markets Report – 09 March 2015

A guest post written by DAR Wong and Chong HC

Rate hike fear returned to US markets on Friday after non-farm payroll surged 295,000 in February. Unemployment rate lowered to 5.5 percent while traders rekindled worries or credit tightening as early as in coming June. Yellow metal and Crude prices slid on Friday after USDX surged to new 11-year highs at 97.71 for weekend closing. European Central Bank (ECB) has remained rates unchanged at near to zero but announces the kick-start of monthly EUR60 billion stimulus fund from the week 9 March onwards.

Crude Oil

WTI Crude prices settled briefly below USD50.00 /barrel benchmarks for the week after it failed to break above 52.00 levels for closing. This week, we foresee the range will trade from 47.50 – 52.00 regions though it is more prone to bearish sentiment. Beware of violating beneath 47.50 supports as this might lead to 44.00 bottoms as our next technical grounds.

Gold

Gold fell more than USD30.00 depth on Friday and settled at USD1167.00 /oz. The market has reached the support area of 1165.00 – 1170.00 regions and might turn into short-covering in coming week. Technically, we foresee range trading will occur from 1165.00 – 1185.00 regions for next 5 days while depending on USD direction. However, be prepared in case of violating beneath 1165.00 supports as this may lead to 1150.00 bottoms as next support.

Silver

Silver prices broke below 16.000 supports on Friday and settled at 15.895 levels. This week, we predict may be moving down towards 15.500 targets for testing this support before turning up. Resistance will emerge at 16.000 levels unless breaking above here will be an indication to resume bullish sentiment. Fundamentally, we reckon Silver has got limited room at bottom for slide compared to Gold as the Gold/Silver ratio has been topping out at above 70.00 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on last Friday after it fizzled out from mid-week 2400 highs. Fall might be due to the profit-taking by the speculators amid reducing overseas demand. The May contract closed at 2290 level. This week, we foresee the market may trade sideways in some short-covering to 2340 regions. Downside support lies at 2260 levels and breaking beneath here will lead to 2220 regions.

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 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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