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Gold and Oil Markets Report – 13 June 2016

A guest post written by DAR Wong and Chong HC

Gold recovered very rapidly last week due to fear of Brexit in U.K. market sentiment. Pound drops amid fear and gives a lending hand to Dollar recovery. In lieu of this correlation, we foresee Crude prices will begin to slide soon as a flight to quality pattern. WTI prices have failed to hold above USD50 per barrel for more than 3 days that could indicate bears coming soon.

Crude Oil

WTI Crude prices have not been able to stand above USD50 per barrel. Technically, we predict the trend is going to slide very soon as fund flight to currency and Gold ahead of U.S. FOMC and Brexit referendum. This week, the trend is strongly resisted at 51.00 with possibility to head southward. Targets are set separately aimed at S1 – 46.00 and S2 – 42.00 areas if our prediction realizes.

Gold

Gold prices rose after Brexit became hot topic in U.K. as the referendum date draws near. Investors are putting stake in yellow metals due to large uncertainty in Pound currency. This week, we reckon the market will recede a little bit from profit-taking with resistance emerging at 1275.00 areas. Downside might re-test 1240.00 areas in mixed sentiment. Traders should adopt swing trading for this week with proper risk control.

Silver

Silver prices have been rising very fast but will meet resistance at 17.500 temporarily. This week, we foresee some profit-taking will occur and reverse the prices back to 16.700 for testing the supports. Silver is a good instrument to long-term investment in case of drawdown. Gold/Silver ratio has been countered at 76.00 regions while it trades lower at 73.00 levels now. We foresee the ratio will dive further to 68.00 in coming months.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly comparison as Ringgit struggled to rise at 4.00 against Dollar. August contract closed at 2580 amid profit-taking activity. This week, we foresee the market will slide further with 2500 at hind side to be reached. Resistance emerges at 2650 in case of pull-up trend.

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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