Gold and Oil Markets Report – 17 April 2017
WTI Crude prices closed at USD53.00 /barrel on Friday and signaled market strength though it did not jump higher. Traders stay on fence while watching OPEC leader Saudi in keeping promise on supply cut in April. Geo-political tension on Northern Asia may lift energy prices higher in coming week. Technically, we predict the range will be constricted from USD50 – USD55 /barrel until we see a breakthrough in near future.
Gold prices broke above USD1270 /oz last week and settled at USD1287 /oz on Friday. This week, we expect the support will rise at USD1270 /oz while aiming higher at USD1310 /oz due to uncertainty of fear among global investors. In case of draw down, the trend will need to break beneath aforementioned support before the trend turns bearish. Note that Dollar index may not have a inverse effect on yellow metal in coming weeks.
Silver prices is sitting on USD18.50 /oz resistance while waiting to pierce above this counter zone. This week, we foresee higher chances for the market to climb till USD19.00 /oz before potential profit taking occurs. Fall back will be supported at USD18.20 /oz if the bull trend wanes. Buyer needs to be ready for liquidation once the demand slows down.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in bearish trend and closed weaker on week-chart. Lower trading prices in vegetable oil put a lid on palm oil as demand wanes. Newly roller-over contract in July month closed at RM2552 /MT on Friday. This week, we predict the trend will have little room left at RM2500 /MT in case of falling while a potential reversal may take place soon. First upside target aims at USD2650 /MT.
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
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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