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Gold and Oil Markets Report – 14 July 2014

A guest post written by DAR Wong and Chong HC

The Portugal 10-year bond yields jumped 21 basis points to 3.97 percent after Banco Espirito Santo triggered fear in debt payment. The false alarm showed the meager confidence in global investors when face with sensitivity of European debts. Gold surged after mid week as flight moved out from equity markets. Crude prices also plunged as demand was staked in yellow metal. Dollar and US Treasuries become asset haven in times of global panicky as investors search for safe country.

Crude Oil

WTI Crude prices continued to fall last week amid profit-taking. Long traders were kicked out from market as the prices fell below 104.00 levels. Market closed at 100.80 on Friday and was supported by EMA 200 average line. This week, we foresee the bears will be countered at 100.00 – 100.50 regions which trend might begin to turn up. Topside resistance will emerge at 103.00 levels as our first target once the correction begins to occur. From last week sage, we discovered the frenzy state of investors to flight out of most instruments including Crude despite the inventories dropped. Stay alert for Euro debts news in forthcoming weeks.

Gold

Gold prices finally broke above the 1326.00 resistances on last Thursday following Portugal news. Yellow metal soared to 1345.00 tops before small retreat. This week, we foresee bargain-hunting will emerge at 1330.00 regions and push the demand higher at 1360.00 due to market short-squeeze. Pressure from Iraq’s militant war continues to lift Gold prices due to fear of uncertainty. However, be cautious of long position in case the trend falls below 1325.00 levels again.

Silver

Silver prices settled at 21.440 for weekend after surging up from the consolidating range. The support will remain resilient at 21.000 for coming week and should entail yellow metal in bullish sentiment. Technically, we predict the trend will climb further but resistance is expected to appear at 21.800 – 22.000 regions. Traders are advised to monitor short-term position and bag profits once target is reached.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives ended lower last week as Malaysia moves into Ramadan month. Decline in Crude prices also added pressure on CPO market though small bargain-hunting has been seen. September contract settled at 2346 while challenging 9-month low record. This week, we foresee the market sentiment might remain bearish with immediate support to be tested at 2320 levels. Breaking below 2320 will go lower to 2300 but reversing up due to short-covering above 2480 will be a signal to see 2420 regions.

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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