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Gold and Oil Markets Report – 17 August 2015

A guest post written by DAR Wong and Chong HC

Gold prices recovered after China announced the devaluation of Renminbi currency. Generally, all commodities traded in China and settled in Renminbi rose in prices after the news. Fund moved back to Treasuries assets as the weakening Chinese currency triggered some sell off in regional equity markets. Crude prices tumbled to March’s low at 42.00 levels and has risen worries of imminent recession. Crude stockpiles rose in last week’s report and put a lid on energy prices.

Crude Oil

WTI Crude prices are worrisome as it broke March’s low at 42.06 levels and challenged the 6-1/2 year low record. Technically, the trend should rebound for short covering at about 50.00 regions for creating a market equilibrium in coming weeks. However, it is crucial to observe the fundamental factors of increasing stockpiles for driving prices lower. We predict an immediate support lies at 39.50 areas but uncertain if this level can hold the bears if prices unwind further.

Gold

Gold prices floated above 1100.00 levels last week and touched 1126.00 tops before closing lower due to profit-taking. This week, we see strong support lies at 1100.00 in case of drawdown. However, uptrend is still resilient in week-chart and should the prices higher at 1140.00 areas as the bulls return for buying yellow metal. Dollar Index (USDX) could be trading sideways under 97.50 levels that give a good opportunity for commodities to recover.

Silver

Silver prices climbed up to 15.600 tops and took a breather before weekend. The week-chart still projects the bullish factor and we foresee it will go higher in coming weeks. Technically, the support lies at 15.000 levels and may prone to trade sideways from 15.000 – 15.600 initially. Breaking above the resistance will lead a new uptrend. Long traders should control risk in case of violating aforementioned support.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives declines again on week-chart while entailing lower demand in Crude and soybean oil prices. Market hit 11-month low at 1958 last week before closing at 2025 in October contract. This week, we foresee the trend will be sideways from 1980 – 2060 ranges in mixed sentiment. Traders and hedgers will adjust their positions as the market digests long and short trades.

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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