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Gold and Oil Markets Report – 2 June 2014

A guest post written by DAR Wong and Chong HC

Commodity prices were generally lower last week due to rising Dollar Index. Gold prices fell below 1380.00 supports as we predicted while rising crude inventories on weekly basis also punted the WTI trend after mid week. The Energy Information Administration reported the weekly crude inventories at 1.7 million barrels and above consensus. However, it is important to continue the observation of Ukraine tension in case the abrasive eruption will stoke crude prices higher in coming week.

Crude Oil

WTI Crude prices have been trading largely from 102.50 -104.50 ranges last week. The market is threading very cautiously without clear direction due to the contradiction of rising Dollar and heating dispute in Ukraine. Technically, we have identified the resistance to be strong at 104.50 – 105.00 regions with triple top formation but penetrating below 102.500 supports needs to be led by fundamental factors in near future. We suggest continual observation to the eventual breakout after this current consolidation.

Gold

Gold prices broke down to 1242.00 lows on Friday and closed below 1250.00 levels for weekend. This week, we reckon the market will continue its bearish trend due to panic selling. However, beware of initial pull up at 1260.00 – 1265.00 areas in early week. Technically, the trend might break below 1240.00 supports again and test 1225.00 regions in case of strong Dollar or Euro rate cut in coming week.

Silver

Silver prices closed at 18.814 on Friday and stood exactly at the support line. Technically, the market has turned bearish while resistance is seen emerging at 20.000 levels. In our opinion, the market may retrace slightly in early this week short short-coverring before declining again. Beware of breaking the 18.800 supports as this could lead the trend lower to 17.000 regions.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives continued the downtrend last week below 2500 levels. Market closed at 7-month low on Friday after affected by plunge of soybean oil prices. August contract closed at 2421. This week, we derived from technical charting that the bears may dive lower at 2380 regions while resistance emerges at 2480 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 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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