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Gold and Oil Markets Report – 20 February 2017

A guest post written by DAR Wong and Chong HC

Dow Jones benchmark closed at historical high 20,624.00 region on Friday while USDX trended firm at 101.00 area. The meeting between President Trump and PM Abe has turned out to be friendly and iron out worries of investors. Yen strengthens a little before weekend as investors reckon Trump still favors weaker Dollar against Yen. Gold and Silver still move amid strong demand.

Crude Oil

WTI Crude prices has been trading in flat range from USD51.50 – USD54.00 /barrel for many week. Last week, market sentiment remained status-quo and investors are observing the increasing reserve in U.S. inventories. This week, we reckon same range will be targeted unless we see unexpected movement in Dollar Index trend or unforeseen news from OPEC members.


Gold prices topped USD1244.00 /oz level again last week but failed to pierce above 1250.00 benchmark. This week, we reckon the trend will continue to hover around EMA200 line that spreads from 1220.00 – 1250.00 area. However, we do identify that buying interest is gradually diminishing unless new strength comes in after the 1250.00 resistance is broken. Long traders should control risk in case of falling beneath 1220.00 level.


Silver prices climbed slowly last week but unable to conquer above USD18.000 /oz level. This week, we uphold similar view by expecting the range to be kept from 17.500 – 18.500 range. However, the ascension seems to be losing grip and might go for a profit-taking anytime. Hence, beware of quick drawdown after coming mid-week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower at 3-month low after the rollover on last Wednesday. Expectation of higher output and weaker demand on soybean oil land palm oil on lower prices. The newly May contract closed at RM2858 /MT. As mentioned last week, we expect bear market to begin in FCPO trend with target possibly reach at 2750 – 2800 bottoms in coming week. Rebound on short-covering will probably aim at 2950 region.

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

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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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