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Gold and Oil Markets Report – 15 September 2014

A guest post written by DAR Wong and Chong HC

Gold persisted in declining last week after USDX surged higher to 84.50 regions before weekend. Yellow metal closed at 1230.00 on Friday while WTI Crude prices also settled at 92.00 levels after traders unwound the long positions from geo-political premiums. Weekly Crude inventory decreased 1 million barrels in-line with forecast and expectation of US interest rate hike over year-end continues to push Dollar higher.

Crude Oil

WTI Crude prices traded sideways while supported at 90.50 bottoms last week. The market is heading for weakening sentiment as inflation remains meager in the US and China economy. This week, we reckon the trend might test 90.00 benchmarks if Dollar strength stays resilient. Otherwise, trading in slightly strong buying interest will be capped under 94.50 resistances in case of short-covering.

Gold

Gold prices broke below the 1240.00 supports last week and might be capped below 1250.00 resistances in this week. Moving forward, we reckon the bears will take control of the market sentiment and might drive down to 1200.0 bottoms before we see bargain hunting. Hence, we predict the range will be weak in short-term outlook unless the market could reverse above 1250.00 that will recover at 1290.00 regions.

Silver

Silver prices would be well supported at 18.500 regions which it closed at this range on Friday. This week, it will be a challenge to observe the market trend because it might break below here to sink lower at 17.300. Alternatively, bouncing off from the 18.500 bottoms might rise to 20.000 benchmarks if the market arises positive fundamental factors.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on weekly basis from taking advantage in tax-exemption. November contract settled at 2076 on Friday while volume increased on short-covering. This week, we reckon the market will sit on 2000 supports and probably climb up at 2100 targets. Beware of the roll-over to October month that might drive more buying interest after mid coming week. Breaking above 2100 might elevate to 2200 levels due to high demand.

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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