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Gold and Oil Markets Report – 20 June 2016

A guest post written by DAR Wong and Chong HC

Gold short squeezed the market sellers by exceeded 1310.00 highs and fell before weekend. Yellow metal becomes an inverse hedge to BREXIT outcome as investors use it as alternative to Pound investment. Crude prices begin to soften as demand news wanes. Market investors are watching BREXIT vote for coming week and Dollar direction as gauge to prime commodity like Gold, Silver and Crude as safe haven.

Crude Oil

WTI Crude prices closed at weaker prices after the trend sank below USD50.00 /barrel benchmarks. This week, we foresee not much positive factors will drive the prices higher unless Dollar falls badly. Range is expected to be resisted at 50.00 benchmarks while open to decline further for correction. We predict the bears will reach down to 43.00 bottoms in near future as fund flight out of energies into other safe haven.


Gold prices have had huge swings since early June while reacting to U.S. payroll data and expectation of U.K. referendum. Technically, we reckon the range will move within 1250.00 – 1300.00 before the BREXIT vote in mixed sentiment of profit-taking. However, breaking beyond this range will possibly occur on Friday upon the news of U.K. outcome on its membership in European Union. In our opinion, we prefer to plan long entry upon drawdown for correction or pierce above 1310.00 levels again.


Silver prices traded in sideways last week while capped under 17.850 resistances. Moving forward, we foresee the range will thread sideways for a while before surging strength to ascend again. Range is expected to test 16.800 supports in mixed sentiment. Piercing above 17.850 again will probably surpass 18.000 benchmarks for an imminent bull run.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly comparison and also hit 5-month low record. The decline is mainly caused by the weak demand from competing with the vegetable oils and the recovery of Ringgit value. The newly rollover September contract closed at 2449 on Friday with a new reversal up signal. This week, the market may move within 2400 – 2520 ranges while waiting to make a breakout.

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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