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Gold and Oil Markets Report – 10 Feb 2014

A guest post written by DAR Wong and Chong HC

The US non-farm payroll rose 113,000 in January and fell below median forecast for a second month. The worries of hitting debt ceiling returns to American Congress as government may face out-budget again at end February. Policymakers stress tapering program will persevere despite Dow Jones markets might fall further. Crude oil supplies rose 400,000 barrels in previous week and much lesser than the forecast, driving up the prices to 100.00 benchmarks.

Crude Oil

WTI Crude prices turned into bullish sentiment last week as inventories reduced unexpectedly. The market has been hovering at 98.00 regions for many days but shot up to 100.00 benchmarks on Friday before settling at 99.80 levels. This week, we reckon selling pressure will emerge at 100.70 – 101.00 areas in case of continual uptrend. The support will firm up at 98.00 regions once the market begins to consolidate for sideways.

Gold

Gold prices closed at 1267.0 regions on Friday. The market is still uncertain of bullish sentiment until it could pierce above 1275.00 resistances in coming week. Technically speaking, the trend is versatile and waiting to be proven of either direction based on fundamental news. Upon piercing 1275.00 resistances, we reckon the bulls might reach up to 1295.00 targets. On the other hand, the bear needs to drive and settle below 1250.00 supports before it could go lower at 1220.00 targets. Stay tune to the influence of China’s trade balance on coming Tuesday morning.

Silver

Silver prices were trading sideways n last 2 days of previous week as sign of fizzling out. This week, the market has to pierce above 20.300 resistances in order to confirm the bullish sentiment. On the contrary, the trend has to break the 19.750 support grounds in case of southward trend dominates. The violation below 19.750 supports may trigger new selling interest that could test 19.000 levels again.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed marginally higher on weekly basis. Recovery in soybean oil pulled up the CPO prices while major commodities poised for bargain hunting last week. The April contract closed at 2577 with approximately 24,000 contracts. This week, we foresee range trading to occur from 2500 – 2600 regions. Strong resistance will emerge at 2600 regions while room of down move is more potential.

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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