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Gold and Oil Markets Report – 1 Jun 2015

A guest post written by DAR Wong and Chong HC

Gold fell below 1200.00 benchmarks last week again as Dollar strengthened. Yellow metal is seen to be supported at 1180.00 grounds despite Dollar rise as investors still favor it as safe haven. Crude prices hovers at 60.00 regions as Crude inventories have been reduced by 2.8 million barrels in the week ended 23 May. Saudi Arabia has maintained record production in May as top Crude producer among OPEC countries, output of 10.25 million barrels daily.

Crude Oil

WTI Crude prices recovered above 60.00 benchmarks on Friday after Saudi Arabia announced record production in the month of May. Market investors perceived as strong demand rising soon to counter the output. This week, we foresee the trend may climb higher to 65.00 targets if the bulls can conquer immediate 62.00 resistances. Downside support remains at 56.00 levels for bargain-hunting demand.

Gold

Gold prices have bounced off strong supports at 1180.00 while closed at 1190.00 regions for the weekend. The market is range bound and may be trading from 1180.00 – 1210.00 regions in coming week. The closing at the end of coming week is important as lifting above 1200.00 benchmarks could be a sign of recovery to 1250.00 in June. However, long traders should observe the drawdown in case breaking below 1180.00 is a sign of new bearish sentiment.

Silver

Silver prices slowed down the fall at 16.500 supports while the white metal closed at near to this bottom for weekend. This week, we expect the range to be mild bullish and lift from 16.500 – 17.200 ranges if Gold turns stronger. The trend should be making a consolidation phase after falling for past 2 weeks from 17.750 tops. Trade cautiously with proper risk management in case the market is still in sideways swings.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on last Friday. Price have been kicked up by weaker Ringgit and changing weather of El Nino in East Malaysia. August contract closed at 2206 level. Monthly chart shows the closing price could trigger another uptrend in June while the bulls need to clear above immediate resistances at 2220. This week, support will rest at 2165 levels and rising further above 2220 will reach 2265 as secondary targets.

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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