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Gold and Oil Markets Report – 12 June 2017

A guest post written by DAR Wong and Chong HC

Yellow metal hit double-top formation last week at USD1296 /oz before market slid. Middle East and UAE countries severe diplomatic ties and transport links with Qatar on last Monday pursuant to its link to Islamist militants like Muslim Brotherhood. Uncertainty arises due to investigation on President Trump and North Korea fires new missile test have injected discomfort into equity market. Precious metals are being sought after as safe haven.

Crude Oil

WTI Crude prices traded on low edge around USD46 /oz amid light activity as investors distracted to European fundamentals last week. This week, we foresee the Dollar Index (USDX) movement resulting from FOMC meeting will create an impact to Crude trend. Technically, the market may move in tight range from USD45 – USD48 /barrel but the likelihood of driving beneath USD45 /barrel could trigger a panic selling to USD42 /barrel if the support is broken.

Gold

Gold prices have moved into consolidation after topped off recent high at USD1296 /oz. This week, the trend may drive lower to USD1250 /oz as a correction before bargain-hunting arises. Technically, we forecast the trend will swing from USD1250 – USD1285 /oz in mixed sentiment for a while. Ascending to USD1290 /oz or higher may resurge another new opportunity to pierce above USD1300 /oz in case of unexpected and erupting factors.

Silver

Silver prices fizzled out from USD17.75 /oz last week after fell short from our predicted target at USD18.00 /oz. This week, we expect bear trend to follow through in order to complete the correction. Downside target is identified at USD16.80 /oz region while selling pressure is expected to ambush at USD18.40 /oz area. Mixed trading is expected in coming week before bargain-hunting arises from aforementioned bottom.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded lower last week but hit expected supported at RM2450/MT before weekend. Rising output and weak export have deterred the escalating prices. August contract closed at RM2453/MT on Friday. This week, we expect some short-covering over the rolling period to September contract while resistance lies at RM2520/MT level. Breaking below RM2450/MT might trigger a new selling pressure to RM2300/MT area.

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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