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Gold and Oil Markets Report – 18 May 2015

A guest post written by DAR Wong and Chong HC

Continual fall in Dollar Index (USDX) has lent support to Gold and Crude prices last week. Yellow metal broke above 1200.00 resistances and settled at 1224.00 regions for the weekend. Crude prices is hovering at 60.00 regions as weekly Crude inventories for previous week have bene cut down by 2.2 million barrels. General commodity prices and Dow Jones benchmarks are holding in firm sentiment after market traders speculated rate hike may be delayed due to lower producer prices released in US economy.

Crude Oil

WTI Crude prices receded below 60.00 benchmarks for the weekend. Market is strongly resisted at 62.50 levels while we reckon support will rise at 55.00 regions. Technically, we predict the trend will thread sideways inside this range for time being until we hear new fundamental influences from Middle East markets. In case of Dollar contraction again, Crude price may pierce above 62.50 resistances and attain 64.00 highs before the bulls fizzle out.

Gold

Gold prices closed at 1224.00 regions that is on high side of immediate technical resistances. This week, it will depend on fundamental news to continue the pull up in order to reach 1335.00 as next resistances. However, falling back below 1220.00 for settlement on Monday may initiate a temporary downward correction to 1205.00 levels. Dollar strength is definitely an essential factor to move inversely to Gold trend.

Silver

Silver prices topped 17.500 regions last week in strong demand. The market is now supported at 16.800 levels in case of drawdown correction in coming week. However, trend is still bullish with room seen at 17.800 areas if it continues to climb higher. Technically, we foresee more likelihood in sideways consolidation in coming week before the bulls go higher in near future.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives Futures closed higher on weekly basis amid weak buying momentum. The current feverish uptrend is due to fear of imminent drought to be caused by El-Nino weather over South East regions. The July Contract closed at 2189 levels. This week, we reckon strong resistance will remain at 2230 – 2250 regions while market tends to trade sideways and prone to bearish sentiment. Going back down to test 2150 supports is high possible.

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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