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Gold and Oil Markets Report – 12 May 2014

A guest post written by DAR Wong and Chong HC

Gold prices weakened last week as Dow Jones stocks traded higher due to hinting comments from FED chief Yellen. She expressed that unemployment and inflation still fall short from FED’s goals while stimulus is still needed to keep the economy in recovery. Crude prices headed up for weekly gains on Friday settlement as inventories stockpile contracted. European currencies declined after European Central Bank’s President Draghi commented willingness to consider inject stimulus in June to keep Euro low for stimulating growth.

Crude Oil

WTI Crude prices swung on Friday amid some buying interests in market at 100.00 regions. This week, we reckon the trend will trade from 99.00 supports to 102.00 tops in case of further support from fundamental news. However, observe the rising Dollar strength from rapid receding value in Euro currencies in pushing commodity prices lower. Technically, we expect the 99.00 areas to be strong bargaining areas but unfortunate giving way at his support level may drive the bears down to 97.00 levels.

Gold

Gold prices fell from 1315.00 highs last week after fund flight into stocks. The market is now capped below 1300.00 resistance levels while it closed at 1288.00 regions on Friday. This week, we reckon the trend may test 1270.00 – 1275.00 supports as the movement could be constricted from 1270.00 – 1300.00 ranges. There is no clue for direction as market will be subjected to fundamental factors for pulling the trend out of the abovementioned range.

Silver

Silver prices fell from 19.756 highs last week as it failed to break above 20.000 benchmarks. This week, the immediate resistance will emerge at 19.500 levels while we foresee the support rises at 18.800 levels. Technically, the range will trade from 18.800 – 19.500 ranges until it breaks beyond wither side of the sideways constriction. Observe the fundamental news in coming week or the inverse relationship to Dow Jones benchmarks.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly basis with July delivery contract settled at 2576. The market continues to weaken mostly due to the current low demands from China slowdown. This week, we foresee the sentiment will remain sluggish but the trend may pull up to 2610 regions before further decline. Downside target will be aimed at 2500 if the bears activate.

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 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

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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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