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Gold and Oil Markets Report – 20 August 2018

A guest post written by DAR Wong and Chong HC

Crude Oil

WTI Crude prices traded in little interest as the prices edged lower. In overall, range trading is still contained from USD64 – USD68 /barrel without clear directional trend. Dollar Index (USDX) is showing strong demand after it reached 96.86 at 13-month high last week. Traders will be watching for Dollar catalyst and OPEC news to gauge the next potential trend in Crude prices. Meanwhile, risk control is advised if the price movement shoots out beyond the aforementioned range.

Gold

Gold prices broke beneath the major benchmark at USD1200 /oz and hit USD1160 /oz before market rebound before weekend. Technically, we forecast the market will conduct range trading in the aforementioned region while strong resistance will emerge at USD1200 – USD1210 /oz in case of recovery. Flight of market liquidity might return to stock market in coming weeks as demand in commodity becomes stagnant.

Silver

Silver prices dipped at USD14.31 /oz last week before recovery took place. This week, we forecast the range will move from USD14.30 – USD15.10 /oz region with some short covering expected. The XAU/XAG ratio chart has shown high retracement and a possible reversal that indicates the potential bottoms in Gold and Silver prices. Long traders for precious metals are advised to stay patient and implement risk control for fishing the bottoms.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Friday due to short covering. Weak Ringgit may be another reason to trigger some demand in the market. The newly rolled over active month in November Futures contract closed at RM2238 /MT. This week, we foresee the trend may escalate higher but resistance is strong at RM2270 /MT region. Support lies at RM2200 /MT constricting a tight range. Going beyond the aforementioned range will initiate a new directional headway.

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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