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Gold and Oil Markets Report – 20 April 2015

A guest post written by DAR Wong and Chong HC

Gold prices traded in sideways trend around 1200.00 levels last week. The tumble of US and European stocks towards end of last week might draw funds into yellow metal this week. Greek debt remains unresolved and has caused fear among investors in Euro zone. Dollar has been declining from 100.00 levels to 97.00 areas and lifted the Crude prices to 56.00 regions before weekend. The cut down in Crude inventories to 1.3 million in the week ended 11 April compared to 10.9 million in previous week also helped to spike up the energy prices.

Crude Oil

WTI Crude prices pierced the strong resistance at 54.00 levels and reached 56.00 regions. This week, we reckon the trend will sit tight on 54.00 regions and climb higher to make short-covering correction at 61.00 regions. The weakening of Dollar strength in corrective phase will aid in lifting energy and commodity prices. Pay attention the weekly Crude inventories on Wednesday night in Asia hours.

Gold

Gold prices reveal a consolidating pattern in day-chart that is prone to go higher in coming weeks. The market is well supported at 1190.00 levels and should not be broken if it were to travel upward. This week, we foresee the bulls will lift higher and bring the prices to 1230.00 if flight of fund moves out from stock markets.

Silver

Silver prices traded in consolidation from 16.000 – 16.500 ranges last week. The market is prone to climb up if Gold/Silver ratio begins to fall from 74.00 heights in coming week. Based on technical outlook, the market has strong bargaining demand at 16.000 – 16.200 supports while breaking above 16.500 resistances might reach 17.000 targets easily. However, long traders need to control your risk in case the trend falls beyond 16.000 levels.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives Futures closed with short covering activities on Friday after testing the intra-week low at 2098. The Malaysia government has announced export tax abolishment in May and adds some buying interest into market. The July contract closed at 2151 on Friday. This week, we reckon the trend will be prone to weakness unless it can clear above 2180 resistances for re-testing 2230 highs. Technically speaking, the trend may fall back to 2080 lows if Dollar weakens against Ringgit.

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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