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Gold and Oil Markets Report – 14 March 2016

A guest post written by DAR Wong and Chong HC

Precious metals remain strong but hold back on new rally due to strong Dollar Index (USDX). WTI Crude poises for demand at USD38.00 regions but unable to clear above USD40.00 benchmarks. The widening trade deficits in China and deepening slowdown in Eurozone put brakes to recovery in energy prices while fund might start to pour into Gold and Silver again as safe haven. European Central Bank cuts benchmarks rates to historical low at zero from 0.05 percent while increasing the monthly purchase program to EUR80 billion for buying bonds.

Crude Oil

WTI Crude prices have been recovering on thin demand. Global supply glut still lingers in the market with caution among buyers. This week, we have identified strong resistance at USD42.00 /oz in case of quick pull up. Beware of another possible slump if major equity indexes fall again. Technically, we predict the trend may potential return to 30.00 regions if the trend could not clear above USD42.00 resistances.

Gold

Gold prices whipsaws on the EMA200 on week-chart at USD1250.00 /oz. This week, we foresee a rally is more likely to occur with support lying at 1230.00 levels. Upside potential will reach 1300.00 as immediate target in case of Dollar draws down. Generally, we foresee more strength will move into precious metals as policymakers implement additional monetary stimulus to revive ailing economy.

Silver

Silver prices also trades in sideways amid strengthening demand. Technically, the support lies at 15.300 regions in case of small drawdown correction in coming week. Potential uptrend is expected once the bulls pierce above 15.820 levels. On day-chart, the trend patter has been sitting above EMA200 line at 15.120 for a while and show sign of further escalation in due time. Be patient to profit from this imminent bullish trend.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives climbed higher in post-El Nino effect as weather becomes hotter. Rollover will move to June contract this week as demand rises for new delivery month. May contract settled at 2607 on Friday. This week, we reckon the trend will sit well on 2540 supports in case of correction. Ascending to 2650 or higher is possible after Wednesday in-lieu of profit-taking activity before weekend.

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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