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Gold and Oil Markets Report – 10 August 2014

A guest post written by DAR Wong and Chong HC

Gold prices traded higher amid unexpected high growth in China’s trade balance on Friday, followed by the US air strikes in Iraq against militant groups. Fear of uncertainty always rushes into yellow metal beside inflation growth. Crude inventories were down 1.8 million on weekly supply and almost in line with median forecast. The demand was weak after it fell from 102.00 tops since 2 weeks ago but market closed on small recovery at 97.45 on Friday after US launched air attack.

Crude Oil

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

Gold prices posted good recovery last week but was capped under 1325.00 resistances. This week, the market is expected to trade from 1300.00 to 1325.00 ranges while trend will move sideways. The sentiment in market will dependent on fundamental news to lead the direction out of the range. Technically, we reckon there will be huge bargain

Silver

Silver prices have shown turn-up patterns from 19.800 bottoms. The sentiment is prone to mild bullishness in coming week but selling pressure will emerge at 20.500 regions. In summary, we reckon the market will trade from 19.800 to 20.500 areas while trailing gold trend. However, Silver prices may rise faster than Gold prices as the Gold/Silver ratio is showing stagnation at 66.00 levels after climbing from 62.00 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives stayed bearish last week while extended to 1-year low. Plunge was due to oversupply and also influenced by falling soybean prices. The October contract settled at 2235 levels. This week, we shall remain bearish in view and expect the bears to test 2200 bottoms. Topside resistances still act at 2330 in case of market pull up retracement.

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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