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Gold and Oil Markets Report – 12 December 2016

A guest post written by DAR Wong and Chong HC

The Dollar Index (USDX) returned to above 101.00 benchmarks on Friday close while Dow Jones markets reached historical new highs again. Demand in Gold weakened again but Silver prices were holding quite firm before weekend. Crude prices have been trading around USD50 /barrel without clear direction. Market oil traders are watching the execution of oil production cut in January before prices could ascend again.

Crude Oil

WTI Crude prices are resisted beneath 52.00 though it is trading in tight range above 50.00 benchmarks. Technically, we reckon the market movement will be ranged from 48.00 – 52.00 regions as we move into quiet year-end trading. January will be an important month to follow the action of OPEC execution in production cut before we could forecast the price direction.

Gold

Gold prices traded down to below 1160.0 bottoms on Friday that is last seen in February. Technically, market may test 1150.0 support before rebound for correction. The sentiment may recover soon as Silver prices have managed to stay firm for many days. Movement is expected to thread sideways from 1150.0 – 1190.0 regions until January.

Silver

Silver prices reached 17.200 highs last week and closed lower at 16.800 for weekend. Fund has begun to move into Silver for locking into next uptrend while supported at 16.500 levels. This week, we aim to see the range from 16.500 – 17.200 levels and extension beyond the range will indicate new direction. Secondary support lies at 16.000 areas.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives failed to conquer above 3200 benchmarks last week. Market fell from 3188 and closed at 3070 in February month. We reckon traders might have liquidated for profit-taking before year-end approaches and roll-over to March contract this week. This week, the trend may slide further to 2970 – 3000 bottoms and selling activity will emerge above 3120 levels.

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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