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Gold and Oil Markets Report – 20 Jan 2014

A guest post written by DAR Wong and Chong HC

The US Dollar has been rising throughout last week and settled at 81.18 levels for the weekend. The US economic inflation has begun to pave way for recovery as producer prices and consumer prices rose 0.4 percent and 0.3 percent respectively, both at highest over prior 3 months period. Gold prices closed firm on Friday amid short-covering and Crude prices stayed firm amid strong buying interest.

Crude Oil

WTI Crude prices drove higher towards last weekend after inventories continued to slide 7.7 million barrels in the week ended 11 January. Market advanced to 2-week high despite Dollar gained in rising value. This week, we reckon the trend will meet some resistance at 95.00 regions while support tends to emerge at 93.00 levels. Thus, sideways consolidation may occur in early week but the probability of climbing higher towards 97.00 areas could be potential in case short-covering occurs. Take note that breaking below 93.00 supports may be a precedence of new bear trend.

Gold

Gold prices unexpectedly pulled up to close at 1253.00 regions on Friday. This week, the selling pressure will still lie at 1255.00 areas but piercing above here might lead higher to 1275.00 regions. The yellow metal has become erratic and moves inverse to DJIA recently instead of Dollar index (USDX). Technically, the market has to break beneath 1235.00 supports in order to rekindle selling interest in market. We have indentified the lower target at S1 – 1210.00 if the bears could break below 1230.00 supports.

Silver

Silver prices traded in sideways trend last week from 19.934 to 20.600 ranges. The market is in little movement while we expect the resistance may be tested at 20.800 levels in coming week. The market will probably move in firm sideways for few days before fizzling out. Observe the violation beneath 19.930 supports as this will drive the prices down to 19.300 levels if the bear trend begins after mid-week.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives was trading in short week due to holiday seasons in Malaysia. The newly rolled-over April month closed at 2544 on last Thursday. The market behaved in slight bullish sentiment as short-covering occurred. This week, we foresee the market will remain sideways while resisted at 2580 levels. Market sentiment is still bearish as the prices might hover at 2500 regions again if demand weakens.

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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