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Gold and Oil Markets Report – 19 December 2016

A guest post written by DAR Wong and Chong HC

The U.S. Federal Reserve tightened interest rates by 25 basis points on last Thursday in FOMC meeting. Precious metals declined to lower prices before weekend. Gold prices moves back to February low while Silver challenges 16.000 levels that is last seen in June. Crude prices also trade firmly above 50.00 benchmarks despite USDX floats strongly above 102.00 levels.

Crude Oil

WTI Crude prices have been holding above 50.00 while closed at 52.00 regions. This week, little action is expected in market and support will continues to hold at 50.00 areas until January. Topside resistances are seen at 55.00 areas in-lieu of traders observing the global production cut in next month. Shrinking supply is expected to lift the prices back to 60.00 if the OPEC members could keep their promise.

Gold

Gold prices broke 1150.00 supports and closed at 1134.00 regions before weekend. Technically, we predict the trend will stay weak until January for returning action for short-covering. This week, we reckon small range will be traded from 1120.00 to 1140.00 regions in low volume. Breaking beneath 1120.00 may trigger some stop orders to test 1200.00 as major benchmarks.

Silver

Silver prices tested the 16.000 supports on Friday. We foresee the worst may test 15.8000 before bargain-hunting emerges. This week, range might be expected from 15.800 – 16.500 regions amid low activity. From Gold /Silver ratio, we expect Silver to be supported at current regions and will recover faster than yellow metals.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 3158 after the market failed to challenge 3200 resistances. Profit-taking amid falling open-interest has slowed down the bullish advancement on Friday. This week, we reckon the trend will continue to trade lower in thin trades and head down to 2050 regions. Resistance will stay strong at current topside 3180 regions.

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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