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Gold and Oil Markets Report – 19 October 2015

A guest post written by DAR Wong and Chong HC

Gold has been rising as Dollar receded to 94.00 levels last week. Both Gold and Silver broke their 4-month high and climbed higher from new demand. Crude prices traded in narrow range from 45.00 – 50.00 ranges after U.S. inventories were reported higher at 7.6 million barrels. General equity prices are rising on global basis from short-covering after FED Yellen confirmed no rate hike last month that triggered sell-off in Dollar.

Crude Oil

WTI Crude prices consolidated at 46.00 last week and may gather new strength for ascension. This week, we reckon the support will lie strong at 46.00 with potential to climb back to 50.00 areas. As commodity prices recover, energy sector will be sensitive to lead the uptrend. If the bulls march above 50.00 resistances, we predict the next target will aim at 54.00 levels.

Gold

Gold prices escalated higher last week and reached 1191.0 levels before closed at 1176.0 for the weekend. This week, we expect some consolidation to take place and trend may trade sideways from 1150.0 – 1190.0 regions. Trend is ideal to pick bottom upon pull down retracement as bulls might return in greater strength. Piercing above 1191.0 resistances may see 1210.0 targets!

Silver

Silver prices have met some selling pressure after it rose to 16.200 highs while it settled at 16.038 for weekend. This week, we foresee the trend may hover at 15.900 for a while before going higher. Technically, the trend may trade from 15.500 – 16.200 for the time being in mixed sentiment. Trend shown in week chart is still strong and may ascend towards end of October. Gold/Silver ratio has suggested the subsequent narrowing could signal faster escalation in Silver in near future.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded higher last week from short-covering. Market has temporary reached resistance at 2340 areas and still remains versatile. Global weakness in demand is fighting the supply cut from El Nino impact as we approach year-end low season. January contract closed at 2305 with sharp declination in open interest on Friday. This week, we predict the trend will drop and move from 2240 – 2320 regions in mixed sentiment. However, we are not so bearish once the drawdown reaches aforementioned levels.

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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