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Gold and Oil Markets Report – 11 January 2016

A guest post written by DAR Wong and Chong HC

Dollar Index (USDX) traded in sideways by making a pull-up last week before it closed lower. Precious metals climbed higher while Crude dipped at low edge. Global supply glut has been making the global economy gloomy as first week of the New Year caused a panic sell-off in global stocks. Investors are putting blame for China for possible hard landing in shrinking manufacturing and devaluing Yuan.

Crude Oil

WTI Crude prices have been lying low and dipped below 33.00 for weekend. The threat of global oil glut and slowdown in economic demand have put lid on oil prices. We foresee more dip will unfold in January before genuine short-covering arises in market. This week, we predict resistance will emerge at 35.00 levels while 30.00 benchmarks seem vulnerable to be tested. If market dips below 30.00 levels, we foresee possibility to reach 26.00 bottoms as our target!

Gold

Gold becomes a safe haven again as world economy portrays sluggish outlook. Market climbed from 1060.00 to 1110.00 last week ad demand grew. This week, we foresee initial drawdown may occur for profit-taking with supports rising at 1085.00 areas. Range trading is expected from 1085.00 – 1120.00 regions as resistance seems strong on topside. Be patient with yellow metal as it needs to consolidate before going higher in coming months.

Silver

Silver prices erased almost all gains throughout the week as it closed at 13.935 for weekend. This week, we expect some ground consolidation to occur as Gold dips a little. A good support is identified at 13.750 regions in case of drawdown. Technically, topside resistance is capped at 14.300 levels. The market needs to pierce above 14.600 in near future in order to confirm the genuine uprun.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives dipped on weekly basis. Global uncertainty, China slowdown in manufacturing and Ringgit weakening have affect the demand factors in market. March contract closed at 2433 levels. This week, we foresee the resistance will emerge at 2460 regions while prone to heavy sell-down sentiment. Market may possibly head down to 2350 as next target.

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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