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Gold and Oil Markets Report – 12 Nov 2018

A guest post written by DAR Wong and Chong HC

Crude Oil

Crude prices stay on weak demand as supply continues to increase among OPEC countries. The U.S. Federal Reserve officials signal another rate hike to come in December and more tightening will be expected in next year. Dollar Index (USDX) firms up to 97.00 benchmark again and puts pressure on commodity prices. On the other hand, the U.S. midterm election has split the Presidential power with Democrats regaining control in the Government House.

WTI Crude prices have been falling for fifth consecutive weekly basis. Market dipped below USD60 /barrel on Friday. Currently, we expect the market trend will be supported at USD58 – USD60 /barrel region while confluent to the EMA200 line on week-chart. This week, bargain-hunting activity is expected to emerge at the support region and going for a technical recovery. Small range is anticipated with resistance reinforcing at USD64 /barrel.

Gold

Gold prices traded in small falling trend last week as traders have been staying sideways to observe the yellow metal as safe haven. Stock market made whipsaw amid rate hike expectation and midterm election outcome. Technically, the yellow metal is strongly resisted at USD1240 /oz with EMA200 line running across this region. Likewise, we reckon the support will remain robust at USD1200 /oz in case of drawdown. Tight range is expected within the aforementioned region until we see a breakout beyond either direction.

Silver

Silver prices are strongly resisted at USD14.80 /oz as market traded in gradual falling pattern last week. From the technical appearance, we reckon the trend will remain in tight consolidation from USD14.00 – USD14.80 /oz until it breaks in either direction. Fundamentally, we perceive it may be a good opportunity to exercise patience while picking the bottom prices at the USD14.00 – USD14.20 /oz region.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives fell last week to new low record as Ringgit weakened further. Demand from oversea markets also reduce in trade order that has hampered the market demand. January contract settled at RM2042 /MT amid weak demand. This week, the trend might decline further to test RM1900 /MT if buying interest withdraws from market. Resistance will emerge at RM2980 /MT region in case of recovery.

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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