Gold and Oil Markets Report – 10 November 2014
Crude oil prices recover slightly ahead of OPEC meeting to be held in Vienna in 2 weeks time. Analysts expect OPEC countries will cut supply to stimulate price recovery despite OPEC officials say the world will need less crude oil in forthcoming 2 decades as shale production grows. Gold prices reversed up on Friday after US nonfarm payroll added 214,000 jobs that was below median forecast. Job market recovery has been slowing down though monthly unemployment rate dropped to 5.8 percent in October.
WTI Crude prices have dropped below 80.00 major supports and traded in cautious sentiment to 75.00 lows last week. Moving forward, we expect the market to trade sideways from 75.00 – 82.00 ranges until the OPEC meeting releases more clues for trend direction. However, the price trend of USDX ranging from 87.00 – 89.00 levels will be crucial to determine the Crude direction in case the sentiment breaks beyond the aforementioned extremes.
Gold prices bounced off 1131.00 lows that is 4-year low record after US released non-farm payroll grew 214,000 jobs in October and below forecast. Technically, we foresee the market will thread in sideways trend in coming weeks for consolidation. This week, resistance will emerge at 1180.00 areas while the trend is prone to find its equilibrium at 1150.00 levels. We expect the movement to be range bound in aforementioned range until the next major economic news appears.
Silver prices were supported above 15.000 levels last week as it bounced off together with yellow metal. This week, we expect the trend to move into short-covering and test 16.500 resistances. The sentiment will be prone to firmness as support rises at 15.000 levels. We reckon immediate support lies at 15.400 levels and worth to take a long position for short-term advantage in making profit. The Gold/Silver ratio has rose sharply to 74.50 levels that puts Silver underpriced behind Gold recovery.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivativesebbed down as Crude prices traded lower last week. Liquidation for profit-taking has added to the price slide as market closed lower on weekly basis. January contract closed at 2195 on last Friday amid reducing open interest. This week, we reckon continual weakness will test 2150 supports and resistance will emerge at 2230 – 2250 regions.
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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