Gold and Oil Markets Report – 15 Dec 2014
Crude prices cause alarm to market as it stretches down to 4-1/2 year low at USD57.00 regions. Selling pressure came after the Saudi Oil Minister said their will maintain market share production and do not favor supply cut. Gold prices spiked up to 1238.00 regions last week and traded sideways at 1220.00 areas before weekend. China reports industrial production slowed down by expanding 7.2 percent in November from a year ago compared to 7.7 percent in October. General commodities have been moving in weak sentiment.
WTI Crude prices have moved into a strong southward journey after the comment of Saudi Government Minister. This week, we reckon the bears will continue to engulf the market and bring the prices down to 50.00 floors before profit-taking occurs. Topside resistance will emerge at 62.00 areas where many previous buyers are waiting to turnover their positions. Theoretically, we foresee the ratio of Gold and crude has widened tremendously and might hammer the yellow metal soon in early January.
Gold prices have been trading higher recently partly due to short-covering and previous weaker sentiment in stocks. This week, we foresee the yellow metal will begin to fall ahead of year-end closing and probably dip down to 1205.00 regions. Technically speaking, we identify the resistance to emerge at 1240.00 while support lies at 1205.00 levels. Sentiment is still prone to bearish until we could evaluate better in January month.
Silver prices have been fizzling out at 17.000 regions while activity slows down. Technically, we predict the trend will begin to turn down this week with support emerging at 16.300 areas. The market is following Gold direction while the outlook of Gold/Silver ratio may create a right shoulder pattern that suggests an imminent down leg in Silver prices. In case of piercing above 17.000 resistances, we foresee stronger resistance will emerge at R2 – 17.500 levels though this may not be potential. Focus on decline on coming week for profit-taking before Christmas seasons.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed with a mixed sentiment on weekly basis. The low output and plunging Crude prices pulled down market demand in uncertain sentiment. February contract closed at 2171. This week, we foresee the resistance will emerge at 2210 – 2230 regions while downside is potential to take a dip. Target is aimed at 2100 regions.
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
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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