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Gold and Oil Markets Report – 10 March 2014

A guest post written by DAR Wong and Chong HC

Gold prices were trading lower for mild correction after Putin pulled out Russian troops from military exercises in West Crimea. Crude trends also settled lower for profit-taking ahead of weekend as inventories increased for seven weeks. The US non-farm payroll grew 175,000 and above median forecast in February, which excited the Dow Jones markets. European Central Bank (ECB) and Bank of England (BOE) held benchmark rates unchanged in last week’s meetings. President Draghi of ECB foresee the inflation will rise before 2014 as recovery begins from now while the latter parties mention the anticipation by British citizens to hike rates within coming 12 months.

Crude Oil

WTI Crude prices fell off 105.20 highs last week and further declined after Wednesday after Crude inventories went up to 1.4 million barrels. The market could be supported at 100.50 areas in coming week while it consolidates inside the range extending up to 105.00 tops. However, beware of sinking further below 100.50 supports which might land at 98.20 targets. In our opinion, the Crude trend will be much subjected to Ukraine tension in coming weeks which will affect the Dollar rate vs. Commodity prices.

Gold

Gold prices topped at 1354.00 regions while market bulls began to slow down last week. The uptrend seems to fizzle out and may conduct small correction though we foresee the 1330.00 supports will be resilient in this week. On breaking below 1330.00 supports, the next lower support will emerge at 1315.00 areas with huge buying interest. Technically, the resilience to float above 1330.00 supports might shoot higher to attempt 1375.00 targets this week.

Silver

Silver prices closed at 20.900 for the weekend with an initial turndown sign. This week, we predict the market will be heading lower for corrective momentum with target aimed at 20.500 levels. The resistance should act at 21.500 areas which might be violated towards end of the week in case of reversal uptrend again. Control your risk for sitting in short trades as the potential devaluation of Dollar may spike up commodity prices very quickly.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives surged up and ended higher on last Friday. The recent dry weather has spurred demands into market amid falling supply. The May delivery contract settled at 2888 with approximately 35,700 contracts. In March, we believe the CPO futures will reach 2950 – 3000 regions before the bulls tire out. This week, we foresee the market will continue move up to 2950 region while the market sits on 2670 supports.

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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