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Gold and Oil Markets Report – 14 December 2015

A guest post written by DAR Wong and Chong HC

Crude prices slipped to almost 6-year bottom at 35.00 regions on Friday and pulled down global stock indexes. Alternatively, Gold prices have managed to stand well above US1070.00/oz though trend still closed lower on weekly basis. Dollar Index trades lower as Euro continues to push higher into short-covering after European Central Bank disappointed market traders on weaker stimulus package. Market players are watching the U.S. FOMC meeting on coming Tuesday and Wednesday in case of rate adjustment before the year-end closes.

Crude Oil

WT Crude prices closed at USD35.45/barrel for weekend in weak strength. This week, we foresee the bears will drive down to test 33.00 regions at the bottoms created in January 2009 ahead of panic selling. Technically, we forecast possibility to test 30.00 benchmarks before the sharp jump. Market trend has been very pessimistic as OPEC members reiterate many times of no intention in cutting supply. Resistance is identified at 40.00 levels.

Gold

Gold prices traded in narrow range last week from 1062.00 – 1086.00 ranges and prone to weak demand. This week, it is essential to observe the FED’s decision as remaining the policy unchanged might lift the prices up to 1105.00 as our first target. In case of further drawdown, support still lies at 1045.00 areas for bargain-hunting.

Silver

Silver prices reversed the gains made in previous week and closed at 13.900 for weekend. This week, it is very crucial to see a recovery up to 14.500 levels in order to project further ascension in January. However, failure to stand above 14.000 after U.S. FOMC will indicate bearish sentiment in market and possibly will head down to 12.500 bottoms as our next support. Observe the fundamental factors for directional trend in coming week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives reversed up on Friday on weaker Ringgit. Global farm commodity prices are better supported by El Nino effects on supply cut despite Crude prices fall. February contract closed at 2440 and touched resistance while leaving traders uncertain on forthcoming trend. This week, we reckon the trend will be supported at 2380 levels and probably will drive higher to test 2500 tops. Beware of sentiment change in case of decline below aforementioned support.

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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