Gold and Oil Markets Report – 1 December 2014
General commodity prices plunged last week after Crude fell below USD70 per barrel benchmark. Gold closed lower on weekly basis while WTI Crude broke 4-1/2 year low record on Friday settlement. OPEC 12-natons group announces they will maintain 3 million barrels daily production despite rising shale production in US and triggers speculation to see the floor price at USD60 per barrel soon. Bond and Dollar rally amid falling Crude and precious metals.
WTI Crude prices have been supported at 96.50 – 97.00 regions after falling for past 3 weeks. This week, we predict the fall will be halted and begin to consolidate amid buying recovery. The market trend is prone to recover at 100.00 benchmarks as price equilibrium. Hence, long traders may design setup for good entry based on expectation of range from 97.00 – 100.00 regions. Pay attention to the fundamental news of Ukraine tension for affecting the Crude supply/demand ratio.
Gold prices fell sharply on Friday and closed at 1166.00 levels. This week, we reckon the market will continue to stay bearish with resistance emerging at 1180.00 levels. Immediate support lies at 1160.00 levels but breaking below here will land at 1140.00 as our next supporting regions. Overall market sentiment is weak and opportunity will enhance upon pull up retracement.
Silver prices closed at 15.440 regions on Friday and turned into bear sentiment again on day-chart. This week, market is trapped inside the range from 15.000 – 16.000 regions but downward pressure will be more engulfing from the technical outlook. Upon penetrating below 15.000 supports, we reckon the bears will drive down to 14.500 levels that could challenge the almost 5-year low record.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower after opened gap-down on Friday. Bearish sentiment was affected by falling Crude prices and new selling interest after market has been stagnant for 2 weeks. February contract closed at 2170 levels on Friday. This week, we foresee the trend will be resisted at 2200 regions while prone to fall further at 2100 levels.
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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