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Gold and Oil Markets Report – 10 October 2016

A guest post written by DAR Wong and Chong HC

Gold and Silver fell last week due to flight back to USD from BREXIT fear. Demand has been removed due to China long holiday which might return this week from market bottom. Crude prices climbed and tried 50.00 levels but failed to stand for solid gains. American payroll is flat at forecast data and put expectation of delay in rate hike until December. Stock indexes have been quite dormant despite swings in commodity and USD prices, but could be due to move in coming week.

Crude Oil

WTI Crude prices touched above 50.00 levels and dropped on Friday despite metals slide. Market focus are laid on supply cut in November but analysts expect no genuine bulls in market until we hear clear direction from OPEC meeting next month. This week, we expect the trend to move into correction between 47.00 – 51.00 ranges while prone to trade lower. Control risk in case the trend breaks above 51.00 levels.

Gold

Gold prices declined to 1250.00 areas after breaking beneath 1300.00 benchmarks. The unexpected fall took many traders by surprises after 3 months of sideways correction. This week, we reckon prices will return to 1280.00 or higher as demand drives into market for bargain-hunting. Support still emerges at 1235.00 – 1250.00 areas.

Silver

Silver prices found the support above 17.200 levels after falling unexpectedly from 20.000 benchmarks last week. Moving forward, we forecast a recovery will occur and advance back to 18.000 this week. Range trading could be small but prone to recover from profit-taking activity in market.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on last Friday while dragged down by the soy oil prices. December contract closed at 2560 with contraction in open interest. This week, we may see the market continue to be bearish towards 2450 levels and resistance is expected to act strong from 2600 areas.

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 26 years of trading and hedging experiences while HC trades for 7 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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