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Gold and Oil Markets Report – 17 Feb 2014

A guest post written by DAR Wong and Chong HC

The US Dow Jones benchmarks rallied and closed at 16,154.00 levels on Friday after FED’s chairman Janet Yellen reiterated in early last week on maintaining the policy of scaling-back in monthly stimulus. Gold and Silver recovered to 14-week highs on weekend closing prices. On Friday morning, the consumer-inflation reported in China at 2.5 percent above median forecast further pushed the yellow metal as demand widened. Crude prices also escalated above 100.00 benchmarks upon lower Dollar Index.

Crude Oil

WTI Crude prices hung at 100.00 regions after topping the 101.38 highs last week. The increased inventory at 3.3 million barrels on previous week report has helped to cap the Crude prices below 101.00 levels despite dropping USD Index (USDX). This week, we reckon the market will be resisted at 101.40 tops while declining may be more prone due to profit-taking. Technically, we expect the downside target to reach 98.00 bottoms once the bears break below 99.50 immediate supports.

Gold

Gold prices were hovering at 1300.00 areas on Friday morning and began to climb after China inflation data was reported. Market closed at 1318.00 for the weekend. This week, we foresee the resistance will stay resilient at 1325.00 areas where technical correction will begin to step in. The initial support will rest at 1290.00 levels from our expected corrective consolidation. Abandon your short-view if the market breaks above 1325.00 in case of unexpected fundamental occurrence.

Silver

Silver prices closed at 21.474 on Friday after a fierce push up by bullish sentiment. This week, we reckon the market will try but resisted at 22.000 regions with small room remaining at the topside. The corrective trend may begin together with Gold after both markets have been rising for the whole of last week. Support will emerge at 20.5000 as we foresee the expected range for this week will extend downwards from 22.000 to 20.500 regions.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher after the newly rolled over May contract settled at 2667 on Friday. Market turnover was enhanced at approximately 40,000 contracts on last week and bullish sentiment was triggered by escalating soybean oil. This week, we foresee breaking above 2690 could continue to ascend higher at 2750 regions while 2600 levels will act as a strong support.

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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