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Gold and Oil Markets Report – 18 January 2016

A guest post written by DAR Wong and Chong HC

Gold traded in mild bullishness last week as same direction in U.S. Dollar index. WTI Crude oil declined as global supply glut continues to threaten demand. Crude prices closed below USD30 /barrel on Friday while hitting 12-year low record. Global stock prices are expected to be flamboyant in coming week as Crude attracts global attention. Dollar index will become main indicator to lead inverse trend to energies.

Crude Oil

WTI Crude prices broke below the low record in 2009 and stretched down to meet the bottoms of 2004 below USD30 levels. By analysis, we project a possibility to hit 26.00 lows before bargain-hunting emerges. This week, we are uncertain if the bears will descend to our aforementioned target then rebound, or recover first for another decline to be made later. Range for this week will be predicted to move from 26.00 – 33.00 regions. Trade cautiously as we expect high volatility in market.

Gold

Gold proved the support at 1070.00 regions last week and closed at 1088.00 on Friday. Technically, we reckon many buying interest at 1050.00 – 1070.00 regions in case of slide down in coming week. We are still optimistic in projecting bargain-hunting in yellow metal despite lower Crude prices. Range is expected to move from 1070.00 – 1120.00 regions if USDX unwinds into lower trend.

Silver

Silver prices have been trading around 14.000 regions for almost 2 months. Market does not decline much just as the strength to lift it higher is limited. The outlook for coming week is not much different from previous week. Support is expected to emerge at 13.600 and resistance remains at 14.300 levels. Trade cautious as we expect Silver to run up faster than Gold when both instruments recover.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded slightly on short covering after rollover to April contract as active month. Falling Crude prices and gloomy economic outlook on global basis may drag palm oil prices lower in coming week. April month closed at 2411 with diminishing open interest. This week, we foresee resistance lies at 2430 while support emerges at 2370 regions. Breaking either side will extend into new directional trend.

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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