Gold and Oil Markets Report – 19 January 2015
Crude prices began to trade in gradual recovery last week as plunge slowed down. Gold prices surged especially after the Euros and Dollar fell against Swiss Franc. Swiss National Bank announces the release of currency peg at 1.2 to Euros and alarmed the global market. Dollar index continues to gain higher and puts lid on general commodity prices.
WTI Crude prices seem to stabilize from falling last week. The market trend will be very tricky this week as piecing above 50.00 resistances might recover at 55.00 areas. However, failing to recover will pose danger in another decline below 45.00 levels again. Fundamentally, the higher prices escalating in yellow metal could hammer the Crude supports with a possibility to test 40.00 bottoms.
Gold prices closed at 1280.00 regions after surging from Thursday. The market is prone to climb higher this week due to short-squeeze in market. Technically, we reckon the support will emerge at 1255.00 – 1260.00 regions in case of some profit-taking in early part of this week. Surging to 1300.00 targets is highly possible if funds continue to flow out from Crude instruments.
Silver prices have started its short-covering by entailing the Gold surge. Technically, we reckon Silver may rise faster than Gold now while the Gold/Silver begins to fall. This week, we foresee the support will lie at 17.000 – 17.250 regions and the bulls might track higher to test 18.500 as our first target. Sentiment remains in bullish trend.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower at 2311 after the rollover of active month moved to April delivery. The drawdown was due to some panic selling in major commodity and strengthening of Dollar in global market after Swiss National Bank announced released of EUR/CHF peg. This week, the market may stay sideway from 2280 – 2350 ranges as we expect some unwinding will arise in market.
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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