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Gold and Oil Markets Report – 21 December 2015

A guest post written by DAR Wong and Chong HC

The U.S. Federal Reserve hikes rate at 0.25 – 0.50 percent after many months of delay. Gold prices fell after reacting to the news on Thursday and recovered before weekend as Dollar Index receded. Crude prices continues to stay sluggish as global supply glut threats with bearish sentiment. Stock market trends are dovish but expected to hold until year-end due to little activity in long holiday seasons.

Crude Oil

WTI Crude prices have been very weak and hovering at 35.00 areas with little demand. Increasing crude inventories on weekly basis has punted down prices in bearish sentiment as reported by EIA. This week, we expect range bound trading in market as traders go for week-long holiday seasons. We expect price movement from 34.00 – 36.00 ranges but decline below the 34.00 supports should be exercised with risk control.


Gold prices bounce from 1050.0 bottoms again and exhibits support at this regions after it was tested in early December. This week, we reckon small recovery will make way to 1080.00 levels as market is expected to move from 1050.00 – 1080.00 regions. However, observe the Dollar Index movement in case there is a spike to 100.00 benchmarks and suppress yellow metal beneath 1050.00 supports!


Silver prices has been standing strong above 13.700 supports that coincides with 6-year low record. Market closed at 14.000 for the weekend with slight rebound. This week, we are expecting some bargain-hunting in market for lifting the prices to 14.500 levels. Immediate support lies at 13.900 areas that need to be firm in order to nurture bullish strength.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives settles lower on weekly basis. Falling Crude prices with slowing exports put lid on palm oil demand while U.S.rate hike threatens commodity prices. March contract closed at 2402. This week, we expect little activity due to long holidayseasons and range may move from 2350 – 2450 regions.

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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