Gold and Oil Markets Report – 17 November 2014
Gold prices surged on Friday late session after U.S. reported the core retail sales and consumer sentiment to be both optimistic and above median forecast. Crude prices also pulled up for closing after sliding for past 4 days as traders await OPEC meeting to be held soon. G20 meeting started on the 8-9 weekend of November while traders observe the movement of currencies and Dollar policy from the recent quick rise.
WTI Crude prices dipped to 3-year low at 73.20 before it closed at 75.80 for the weekend. The market sentiment is still prone to bearishness though short traders may be prepared to cover profits as they watch the coming OPEC meeting. In the event of up move trend from supply cut policy, we reckon the trend may gain momentum to 80.00 areas. On the other hand, breaking below 73.00 supports will initiate new selling pressure to test 70.00 major benchmarks. Selling upon pull-up retracement is preferred in the current technical outlook.
Gold prices pulled up unexpectedly on Friday late session from 1150.00 regions and closed at 1188.00 levels. The market triggered many short-coverings as U.S. showed inflationary data. This week, we foresee the market may rise further to 1200.00 regions before dropping again. The support will emerge at 1175.00 as it turned over from precious resistance regions. Trade cautiously and observe the U.S. inflation reports on consumer prices and producer prices in coming week for gauging the trend for yellow metal.
Silver prices dipped to almost 5-year low 15.055 last week before closing at 16.294 on Friday. Technically, we reckon the market will be strongly resisted at 17.300 top areas in case of recovery. Support is temporary identified at 15.000 major benchmarks. This week, we prefer to pick short trades upon upwards retracement rather than bottom entry. Gold/Silver ratio closed at 72.86 that is higher than previous weekend closing price, thus still weighing on selling pressure over coming weeks.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivativesclosed lower on Friday due to reduced exports to India. The January month settled at 2204 and active month will roll over to February from Monday onwards. This week, we reckon the range will be southwards bound while resistance caps at 2250 levels. Breaking below 2190 supports will probably land at 2140 regions towards the weekend.
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
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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