Gold and Oil Markets Report – 12 January 2015
Crude broke below USD50 per barrel last week at 5 year low record after OPEC governors said supply output will stay unchanged. However, yellow metal prices climbed throughout the week as major equity prices began to sink. America added 252,000 jobs in December while FOMC minutes reiterated the unlikelihood to raise rates in first semester of the year. Dollar continues to stay strong and suppress on European currencies and general commodity prices.
WTI Crude prices indicate fragility in the supporting demand while staying resilient at 55.00 selling pressures. This week, we foresee a difficulty to predict the trend as it is subject to either direction. The market might make technical recovery at 55.00 since it has been dropping for past 6 months without pull-up correction. Otherwise, the bear may also take a new dip to test 45.00 grounds and then thread from 45.00 – 50.00 regions. We supposed the Dollar will be the leading factor to gauge Crude trend for coming week.
Gold prices surged in strong sentiment last week and closed at 1223.00 regions for the weekend. Technically, we have identified strong support at 1190.00 levels while the bulls may aim for 1240.00 in coming week. Generally, we still foresee sideways consolidation in the trend and reckon the market may turn after mid this week. Pay attention to the Crude prices as the recovery in Crude may converge the Gold prices in coming week.
Silver prices have been trading in the region of 16.000 levels but in mixed sentiment. This week, we foresee the trend may rise to 17.000 – 17.300 tops before correcting downwards again. The market is still trailing yellow metals though Gold/Silver ratio continues to sit on high levels at 74.00 regions near to 6-year high record. Technically, we reckon the support lies at 15.500 levels and will be reachable once the trend begins to drawdown after completing this coming pull-up momentum.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on the first trading week of the year. Weaker output due to changing weathers and receding Ringgit are main reasons for the bullish sentiment. March contract closed at 2348 levels on last Friday in strong demand. This week, we foresee the market will be well supported at 2280 regions n case of drawdown but a likelihood of ascending to 2420 targets is expected if Malaysia currency continues to weaken.
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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