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Gold and Oil Markets Report – 16 June 2014

A guest post written by DAR Wong and Chong HC

The commodity prices traded higher last week after Iraq erupted internal war. Ukraine tension also put pressure into spiking crude prices amid fear among global investors. The technical corrections in DJIA and equity prices also moved funds into buying Gold after mid last week. Dollar index remains strong above 80.00 benchmarks as market fear has instigated flight of funds into US assets.

Crude Oil

WTI Crude prices have broken above 105.00 resistances and the bulls will continue to head up higher in coming week. Technically, the support has emerged at 105.00 levels and should protect the uptrend in strong sentiment. This week, we expect some correction trend will occur from 105.00 – 107.50 ranges but any further news of worsening disorder in Iraq might pull the crude prices to 110.00 as our likely target!

Gold

Gold prices traded above 1265.00 resistances after last Thursday and began to edge higher towards weekend. The market may be climbing higher in coming week and back towards 1290.00 regions if the bulls could stay above 1265.00 supports. Bullish sentiment will be supported by the warfare unrest in Gulf countries and uncertainty in global slowdown. However, beware of yellow metal falling below 1260.00 levels as this will initiate new selling pressure to 1240.00 regions.

Silver

Silver prices have shown reversal sign and might be heading up to 20.000 levels in coming week. Technically, we reckon the market will be trading from 19.000 – 20.000 ranges in near future. In fact, the recovery of precious metals might be resilient in coming week and we foresee the Silver could escalate to 20.500 levels. Long trades should safeguard their position in case of price fall below 19.000 supports.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Friday on concerns the coming moderate El Nino weather will affect the palm oil production in the coming months. The August contract settled at 2427 in short-covering sentiment. This week, the market may recover higher at 2470 regions if the buying sentiment continues after general uptrend in commodity prices. Breaking below 2390 supports will move back to 2360 bottoms if market falls back into weakness.

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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